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.
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Yet Tesla is on verge of bankruptcy….
At least their market cap is US$30 billion (RM128 billion)
Proton market cap apa? 49% sold for RM170 million so 100% of Proton should be about RM350 million
Amazing, Tesla is so much younger than Proton and yet, one company is RM128 billion and another company RM350 million.
Market cap means nothing when kompeni collapses. Just ask those suppose millionaires-now-paupers, 100k pipu market share, now what happen?
Tesla sold 80k cars last year, no4 biggest in the world now.
Proton sold around 100k cars last year, sold to China man.
When a company is selling goods or junks, it tells big difference.
Wait a minute. Din u say bigger market share = better quality = better company? So if Tesla has negligible market share in own country, means…
What is tesla going to do with p1? Are you sick?
Most of PT post u will talk about proton. Stop it la wei.
what does this has to do with PROTON? It’s a news about BMW and Tesla… in American Market where PROTON doesn’t even sell car…
You just have to drag PROTON into everything eh? Ko “mimpi basah” pun ada PROTON dlm tu skali ke? -.-“
Yet PM pick Tesla. Oh wai..
If he picked Tesla coil to jaga rumah, its not bad choice. Oh wai
U have a crystal ball to tell U Tesla will closed shop isit??! Uber is loosing an Absolutely Insane Amount of Money(US2.8 billion 2016) also U did not bash.
It it because our Gov is holding & advocating that U keep your BIG mouth shut?! All Big tech stock is valued insanely high. Look at FB & Amazon. It’s all about “potential for future growth”. Do U have potential to grow john? I think U will most likely fail B4 Tesla bankrupt.
I din say it, the finance experts did. Next time read more b4 open that BIG mouth.
And a lot of big hype companies HAD collapse/ almost collapse due to unsustainable practice or founder lost interest. Ever heard of Pebble?
“while Tesla sold less than 80,000 vehicles and lost US$725 million (RM3.09 billion)”
– sounds like another OEM with the same sales figure and loss…
– another hint? Starts with P and ends with ROTON =P
You have bad heart, why dragged in p1 here?
And yet pipu bash one but praise the other. Funny pipu we got here.
What does it tell U when a loosing company(Tesla) can overtake a profitable company(BMW) in terms of market capitalization?
It means Valuation of Tesla is higher than BMW & this isn’t Fundamental too. The reason Tesla share is higher is due to – “A vision of limitless potential”. Go to Elon Musk or Tesla, they will tell you – It’s about the story. Yes, EL can tell a better story.
In short, Tesla value is higher because the Americans believe in Elon Musk/Tesla hence they believe that it’s CEO is inventing the future – of cars, of electricity for homes, of clean energy in general.
It is entirely up to the world to believe or accept if Tesla will capture the world just like how Apple capture the hand phone market.
If the American believe in Elon Musk, I believe Tesla will succeed simply because they have the products that the world want & we all also want a clean energy/world.
Another words, all that money is just an illusion, supposedly what the company cud make in future, but who knows what future is. Thats the best thing in trumpland, all their money is not real but can print them out so easily.
@ John,
It is perfectly fine for technology companies to have high valuation because of the potential technological spin off and what might be. That is the function of the whole stock market where you value the potential future earnings of a company. If an investor wants to value a company current earnings that there is bond market.
Whether Tesla would be around in the future, nobody knows but what they have created is a game changer in the transportation market. This economic cycle is similar to the produces of that horse carts in the late 18th and early 19th century when the automobile was invented.
So I think before you start bashing, please come out with intelligent arguments and please back them with facts. It is very FRUSTRATING reading your constant ranting which does not add any benefit to this discussion bloc.
While from a market POV its perfectly fine, from an investor POV its a nightmare. How does a company with little market presence, bordering on bankruptcy and yet hyped with FUTURE earning potential can be compared with a company that has assets and brand presence and market stability with REAL earnings?
Its better to compare with tech companies like M$ & Apple & etc, that lives on future earnings and yet these giants DO HAVE all that BMW has above in their own sector.
Reality, Tesla is miserable in either auto or tech sectors. It only lives on hype & sapot by loyal followers, just like a certain Mr 20% Return here. Granted its a innovative R&D company, but R&D by itself never makes money. We must see it for what it really is.
@John
I find your argument flawed. By the same logic you would have invested in Kodak and not bother with Apple at the time when Kodak commanded a large share in the instant camera segment while Apple was trading with rather high valuation? This was around 15 years ago. Companies such as Xerox and Kodak are all gone.
Valuation means nothing. Its because its not real assets. Just projection of greater things to come. Many companies with high valuations have gone bankrupt. But companies with high volume and assets never go bankrupt.
Thats correct. Alot of MY pipu that unfamiliar with financial terms, dun see that. They see that much of money and think thats what the company is worth, but reality is not. No wonder so many pipu easily got conned.
@ Valueless,
What are real assets? Brick and Mortar? Granted that many high valuation companies that have gone bankrupt during the dot com era, but the underlying different of these companies were they did not invest R&D that can be adapted for commercial application and were a mere intermediary of services.
History has proven time and time again that companies or society that fail to adapt to technological advancement will fade away. The buggy whip industry and the whaling are examples.
From your reply, I can deduce that you don’t hold shares in any company because shares are an illusion to U.
You can continue to hate the US/China/Japanese & Koreans as most of your comments are based on hate & bashing which lack substance.
I noticed that U hate Rich people even if they are Malaysian. Get a life instead of trolling.
U are right on who knows what future is. One thing is certain. If U do not have a vision/goal, U will FAILED.