Tesla Isn’t A Car Company
Market Says It’s a Tech Stock

Tesla’s growth and margin profile is more aligned with a technology company than a traditional automobile manufacturer, which may explain why the market believes the company should trade at a relatively large premium versus its peers. Learn why analysts believe Tesla will maintain a leading advantage over peers for the foreseeable future.

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Here are a few key takeaways that provide insight into why Tesla trades at a relatively premium to their automotive peers:

  • In 2021, demand for Tesla vehicles outstripped supply, with production capacity being the only inhibiting factor for growing deliveries.
  • Tesla’s profitability has improved, and automobile gross margins are now closer to iPhone territory than a car sold by traditional auto manufacturers.
  • Investors believe that Tesla has tangent markets outside of automobiles in their sights, such as power generation, AVs, batteries and solar.
  • Electric vehicles (EVs) account for less than 9% of total global car sales in 2021 but are expected to reach about 40% by 2030.

Download this Tesla Whitepaper