Tesla Worth More Than World’s Big Car Companies Combined

By Douglas A. McIntyre Published Sep 26, 9:45AM EDT

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Tesla Inc. (NASDAQ: TSLA) is the 10th most valuable company in the world.
Is the EV maker really worth more than a trillion dollars?

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Tesla Worth More Than World’s Big Car Companies Combined — © Xiaolu Chu / Getty Images News via Getty Images

Tesla Inc.’s (NASDAQ: TSLA | TSLA Price Prediction) market cap has hit $1.1 trillion after a sharp share price rebound from March, when Elon Musk’s relationship with President Trump fell apart. This makes it the 10th most valuable company in the world. This is more than all the other major automakers in the world combined.

Toyota, the world’s largest car company by global sales, is second on the list with a market cap of $227 billion. China’s BYD, the largest electric vehicle (EV) company in the world, is worth $112 billion. America’s two auto giants are well behind. GM’s market cap is $65 billion, and Ford’s is $44 billion.

The huge disparity is based largely on the showmanship of Tesla founder Elon Musk. He has made a number of sales pitches in the past, including for the Cybertruck, which turned out to be a massive bust.

Musk’s pitch now is that Tesla is an artificial intelligence and robotics company, and it should be valued as such. Some proof of this, he says, is the Optimus robot. Tesla designed it to do many mundane human tasks. In the future, it will take on more complex tasks, including driving a Tesla. Now, it is not even out of early tests.

Tesla’s most advanced AI product is its robotaxi. It will be able to transport large numbers of people without a driver. Eventually, it will take the place of cabs and buses. It is also in early stages. By the end of the year, it is likely to be in fewer than five cities. The same technology will allow Teslas to be completely self-driving. There is no evidence that will happen soon.

One hurdle for self-driving vehicles is that states and cities have to approve their use. That could mean years of paperwork.

Is Tesla worth $1 trillion? It’s a stretch.

Tesla Stock Price Prediction and Forecast 2025–2030

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.