| Where do you get Toyota's $40 B in profit? Last fiscal year Toyota made $17 billion profit, which was less than $19 billion profit 6 years ago. Profit growth rate is the crucial part of the info you skipped. To simplify: market cap is ${CurrentProfit} * ${P/E}. P/E is a reflection of profit (earnings) growth rate. Since becoming profitable, Tesla has been growing profits at 50%+. They are the fastest growing large company in the stock market. That growth is going to continue due to ramp of Giga Berlin, Giga Texas, introduction of cybertruck, Inflation Reduction Act which will turbocharge EV demand in US. Toyota is not growing earnings at all. Things are likely to go even worse in the near future. The EV market share is skyrocketing (25% in Europe, 30% in china) but Toyota has only 1 EV currently that isn't selling well. It's rumored that they are scraping their old EV plans (make EVs based on current platform that was designed for easy manufacturability of both EVs and ICE cars in the same factory) and considering developing a new platform. Platform that won't be available until 2026. EV market share is likely to grow 50% YoY and during that time Toyota won't have EVs to sell. That won't end well. Tesla is severely undervalued based on their forward P/E ratio, which is lower than for companies with much lower growth rate. |
"You might want to be friends with me, I'll become President of the United States one day. Up until then you can call me Future President Jack."
It maybe less speculative of a statement than all the above assumptions