how is Tesla worth more then any other car manufacturer?

Question

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

Answer 1

Companies are priced on expectation of future earnings. So people are expecting Tesla will sell more cars in the future than these other companies.