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Investors Business Daily
Investors Business Daily
Business
MATT KRANTZ

Toyota Nearly Strips Away Tesla's Last Shred Of Dignity

Tesla stock is suffering one indignity after another. And now Toyota Motor is close to serving up another: Stripping Tesla of the title of the most valuable automaker.

Following a 43% implosion in Tesla shares amid a 26% rally in Toyota Motor this year, Tesla's market value fell to $453 billion and is dropping fast, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge. That's now only 30% higher than Toyota Motor's market value of $306 billion.

"While we have seen much more tenuous times in the Tesla story going back to 2015, 2018, 2020 … this time is clearly a bit different as for the first time many longtime Tesla believers are giving up on the story and throwing in the white towel," said Dan Ives of Wedbush Securities.

Tesla: We're Still No. 1

To be sure, Tesla is still the world's most valuable automaker. Rounding out, the top five include Stellantis at $95.2 billion, Mercedes-Benz at $81.7 billion and BYD at $80.2 billion, says S&P Global Market Intelligence.

But Tesla stock is dropping like a rock following disappointing first quarter results. Forget about simply being the worst performer in the Magnificent Seven. Much more shocking is Tesla's fall inside the S&P 500. At its current value, Tesla is now only the 14th most valuable in the index rather than in the top five.

Ironically, Tesla's value now trails Exxon Mobil's $477.2 billion. Tesla's all-electric vehicles were supposed to siphon off demand for oil. Tesla's future doesn't look all that bright, either. Its adjusted profit per share is seen falling nearly 13% this fiscal year. And Toyota's profit is seen shooting up more than 86%.

Will Toyota deliver the final insult? It's only 30% away.

Most-Valuable Major Automakers

Tesla is clinging to its No. 1 position

Company Name Market value ($ millions)
Tesla $468,958.7
Toyota Motor 306,195.6
Stellantis 95,232.0
Mercedes-Benz Group 81,692.7
BYD Company 80,181.1
PACCAR 58,264.8
Honda Motor 55,257.7
General Motors 48,913.3
Ford Motor 48,466.6
Hyundai Motor 38,613.8
Sources: S&P Global Market Intelligence, IBD
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