Is Toyota the Next Tesla?

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Over the last four quarters, Tesla generated total revenue and earnings of $96 billion and $15 billion, respectively. Toyota's revenue and earnings are roughly three times greater at $299 billion and $44 billion. Yet Tesla's market cap is more than double that of Toyota.

Tesla shares have soared since going public, while Toyota and other major auto manufacturers' shares have meandered. Since going public in 2010 at $1.59 (split adjusted), Tesla shares are up nearly 12,000%. That figure is more stunning, considering it's down 50% since late 2021. The graph below, charting the two stocks since 2018, highlights Tesla's outperformance versus Toyota and the extreme volatility of its returns. As shown in the second graph, 40-50+% drawdowns are common for Tesla.

tesla and toyota

tesla and max drawdowns