What Elon Musk’s new title might mean for markets Or … Tesla’s share price, intrinsic value or market madness
On 7th January Elon Musk became the wealthiest man on Earth and Mars. This was in large part due to the astronomical rise in the price of Tesla shares that he owns.
Tesla is now worth $780bn US dollars and is the 4th largest company on US share market, behind only Apple, Amazon, and Microsoft. It is by far the most valuable automobile company in the world, the next most valuable being Toyota Motor Company at $240bn US dollars. An owner of all of Tesla’s shares could currently sell them and buy three Toyota Motor Company’s and have a handy chunk of change left over.
The table below compares Tesla to 3.2x Toyota Motor Companies. 3.2 Toyota Motor Companies would be producing 57x more cars, receiving 28x more revenue and have 57x more assets than Tesla.
| Measure | Tesla | 3.2x Toyotas | Difference |
| Market Capitalisation | $US 783bn | $US 783bn | |
| Revenue | $US 28bn | $US 777bn | 28x |
| Net Profit | $US 660m | $US 46.9bn | 71x |
| Net Tangible Assets | $US 16bn | $US 599.2bn | 36x |
| Units delivered in 2020 | 500,000 | 28,397,303 | 57x |
Source: Bloomberg, Revenue and Net Profit based on year to 30 September 2020
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