As of early December, BMW held a US$30 billion (RM127.8 billion) margin in market capitalisation over California-based Tesla Motors. That positioning has since been reversed, following a rallying of Tesla shares, according to a Bloomberg report. The American electric vehicle manufacturer overtook General Motors in market capitalisation back in April, thus making it the highest-valued US automaker.

Fourth it may be in market cap, however Tesla is a long way off from BMW in terms of sales and profits. According to the report, the German marque sold nearly 2.4 million vehicles last year and made US$7.7 billion (RM32.8 billion), while Tesla sold less than 80,000 vehicles and lost US$725 million (RM3.09 billion).

“We think they are going to be burning close to US$750 million to US$1 billion (RM3.2 billion to RM4.3 billion) a quarter for the next handful of quarters. Tesla has its big test ahead of it (with) the Model 3. It has been losing money selling US$120,000 cars, but it hopes to make money selling the US$35,000 car,” investor Jim Chanos said at the Bloomberg Invest New York Summit.

Some of the positive sentiment surrounding Tesla is due to its other business units, including that of energy. Whether or not Tesla justifies its valuation depends on electric vehicle demand taking off, according to an analyst.

The report adds that BMW deploys US$59 billion (RM251 billion) in plants, property and equipment to generate its US$104 billion (RM443 billion) in revenue. In contrast, Tesla uses US$6 billion (RM25.5 billion) in assets to generate US$7 billion (RM29.8 billion) in revenue.