Tesla’s Market Value Nears JPMorgan

By Douglas A. McIntyre Published Jul 8, 7:02AM EDT

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Tesla’s Market Value Nears JPMorgan — © courtesy of Tesla Inc.

Tesla Inc. (NASDAQ: TSLA | TSLA Price Prediction) shares have continued a rise, which made the company more valuable by market cap than Verizon, Netflix and Walt Disney. It is within striking distance of topping the market cap of JPMorgan Chase & Co. (NYSE: JPM), America’s largest bank, and one of the premier financial institutions in the world.

Tesla’s current market value is $258 billion. JPMorgan’s is $281 billion. Over the past 12 months, Tesla’s stock is higher by 496%, while JPMorgan’s is down 19%.

The extraordinary figures are particularly striking because of JPMorgan’s success. Run by one of the most famous financial executives in America, Jamie Dimon, the bank had revenue of $26.9 billion and net income of $2.9 billion in the first quarter. The bank has 250,000 employees.

The electric car company is comparatively very small. Tesla had revenue of $6.0 billion in the first quarter, which is up 32% from the same period a year ago. Of that, $5.1 billion was from automotive operations. Net income was a mere $16 million. If its revenue accelerates at a similar rate for the balance of the year, automotive revenue may reach $25 billion. However, the COVID-19 pandemic could push that number much lower.

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Tesla built 102,672 cars in the period, 33% more year over year. It delivered 88,496 cars. Perhaps Tesla’s deliveries may reach 350,000 this year. Once again, the pandemic could hamper that. Contrast that to Volkswagen, the world’s largest carmaker by unit sales, which reached 10.97 million last year.

JPMorgan competes with some of the largest financial institutions in the world, particularly Goldman Sachs and Bank of America. It has more than held its own against them and is likely to be a profit machine for years, if not longer.

Tesla, on the other hand, competes with every large car company in the world. Each either has electric cars or will soon. While the Tesla brand is a powerful one for consumers, it could be overwhelmed by vehicles from much larger manufacturers. Tesla could drop from its spot as the largest electric car company in the world.

JPMorgan’s stock is unlikely to move much over the next few months. Tesla’s continues to rise most days, but, if the history of its share prices is an indication, it also would crash.
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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.