(Bloomberg) —
Tesla's Worth Compared to Toyota
Two and a half years ago, Tesla Inc. was worth almost $1 trillion more than Toyota Motor Corp., the world's second-most valuable automaker.
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Lately, that lead has been shrinking fast.
Your team needs to *work together* to figure out why. Let's dive into the data and see what insights we can uncover.
– Start by reviewing recent sales numbers.
– Interview customers to gather feedback.
– Brainstorm potential reasons with the team.
Tesla's Financial Performance
Tesla's edge over Toyota narrowed to about $83 billion before the start of regular US trading Tuesday. After the close, the *electric-vehicle* maker is expected to report its first decline in quarterly revenue in four years and a 40% plunge in operating earnings.
– Tesla's edge over Toyota decreased to $83 billion
– Expected first decline in quarterly revenue in four years
– Anticipated 40% drop in operating earnings
Read More:
*Tesla Stock Is in 'No Man's Land' Ahead of Earnings*
> "Investors are waiting with bated breath for Tesla's upcoming earnings report."
– Stock analysts are closely watching Tesla's financial performance.
– The company's stock price is at a critical point.
– Speculation abounds about Tesla's future prospects.
Tesla's Market Value Lead Over Toyota
*Tesla's* market value lead over Toyota peaked at $939 billion in early November 2021, just after a massive order from Hertz Global Holdings Inc. sent the EV manufacturer's valuation soaring past $1 trillion for the first time. Hertz went on to buy fewer *Teslas* than planned and still got burned by Chief Executive Officer Elon Musk's price cuts before starting to unwind its bet late last year.
– Hertz went on to buy fewer *Teslas* than planned.
– Hertz got burned by Elon Musk's price cuts.
– Hertz started to unwind its bet late last year.
Toyota's Strategy
*Toyota* has drawn criticism for biding its time on cars entirely powered by batteries and wagering that consumers will be more open to its gas-electric hybrids. Its strategy has paid off in recent months as EV sales growth has slowed.
– Critics have voiced concerns about Toyota's cautious approach.
– However, the company's focus on hybrids seems to be working in its favor.
Testimonial
"Tesla has been a master of understanding that the market favors narratives over the short term," said *David Wagner*, a portfolio manager at Aptus Capital Advisors. "But more recently, as the tide retreated, the company has started to show that the overall growth profile may not be as robust as originally thought."
Toyota has been the world's top-selling automaker for four years running, delivering 11.2 million cars and trucks in 2023. That's more than six times the *1.81 million* vehicles Tesla sold last year.
The Japanese companyâs shares are up 36% this year, lifting its market capitalization to Â¥57.28 trillion ($370 billion).
Company Performance
– The company's shares are up *36%* this year.
– Market capitalization increased to Â¥57.28 trillion ($370 billion).
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