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.

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.

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