Tesla's market capitalization is currently larger than Toyota's, even though Toyota's revenue and earnings are significantly higher.
While "bigger" can be interpreted in several ways, the most common metrics are market capitalization, revenue, and earnings. Let's break down the comparison:
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Market Capitalization: Tesla's market capitalization is more than double that of Toyota. This reflects investor sentiment and expectations for future growth.
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Revenue: Toyota's revenue is roughly three times larger than Tesla's.
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Earnings: Toyota's earnings are also substantially larger, about three times that of Tesla.
Therefore, defining "bigger" depends on the criteria:
- If 'bigger' refers to market capitalization: Tesla is bigger.
- If 'bigger' refers to revenue or earnings: Toyota is bigger.
In February 2024, the disparity was noted: Toyota's revenue and earnings were significantly larger, while Tesla's market cap was more than double Toyota's. The stock performance differences – Tesla's soaring shares versus more moderate performance by Toyota – explained this disconnect.
