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 |
