- Hertz Announced an initial order of 100,000 Tesla’s to be filled by year-end 2022.
- Tesla skyrocketed from a $913-billion market cap (October 22, 2021) to $1.21 trillion.
- The bullish response added $300 billion, implying a $3-million price tag per vehicle ordered (not sold).
Tesla Daily Chart
Tesla shares skyrocketed above $1000 on the Hertz announcement. Tesla is now worth more than all the auto manufacturers combined. More on that later.
Tesla Market Cap
Let’s say Tesla makes a generous $20,000 profit per vehicle ($20,000 X 100,000). That indicates a gross profit of $2 billion, far shy of the $300-billion increase. What is going on here?
Ford Motor Company
By comparison, Ford Motor Company currently sports a $72-billion market cap, so Tesla adding $300 billion in market cap is like adding four (4) Ford Motor Companies.
Major Auto Companies by Market Cap
Below is a quick rundown of all major auto manufacturers by current market cap. Tesla is worth more than all and sells less than 1% of the vehicles.
- Toyota 247-billion
- Volkswagen 142-billion
- Daimler 108-billion
- GM 80-billion
- Ford 72-billion
- BMW 58-billion
- Volvo 58-billion
- Honda 52-billion
- Ferrari 45-billion
- Hyundai 40-billion
- Fiat Chrysler 30-billion
- Nissan 20-billion
- Kia 19-billion
- Subaru 15-billion
- Nikola 5-billion
- TOTAL $991-BILLION
With a market cap of $1.21 trillion, TSLA is trading at a 25% premium above all auto manufacturers on the planet!
Tesla looks, acts, and smells like a bubble. The question is…when will it pop?
AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super-cycle. For regular updates, please visit here, or follow AG on Twitter at https://twitter.com/ag_thorson