I dont have the exact numbers, but I read that
VW sold about 12 million cars last year,
Mercedes over 2 million,
Tesla less than 1 million.
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How can there be suge a huge difference in the worth of these companies?
In: 0
I think there are two general explanations:
1) The value of a company is based on profitability, not sales numbers. At various points in time, the traditional car manufacturers have sold large numbers of cards while losing money. I think there’s a decent case to be made that Tesla is (or has the possibility to be) more profitable than typical car makers because it has lower costs (e.g. it has non-union labor) and because it sells all of its cars at a high price point and with a high markup.
2) Tesla’s price is almost certainly inflated by the fact that its cars are trendy and popular with a subset of the population that has a lot of extra income to invest.
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