Tesla Inc. TSLA has emerged as a force to reckon with in the automotive industry, thanks to execution and external factors that support faster adoption of electric vehicles. An analyst recently shared data that highlighted how the Elon Musk-led company has risen in ranks over the years.
What Happened: Tesla has increased its sales from a mere $0.4 billion 10 years ago to $81 billion currently, said Charlie Bilello, chief market strategist at CPI Wealth noted. In comparison, legacy automakers General Motors Corp. GM and Ford Motor Co. F grew topline from $152 billion and $134 billion, respectively, 10 years ago to $157 billion and $158 billion, he noted.
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The numbers suggest while Tesla grew revenue by 20,150% over the past decade, GM and Fed saw revenue growth of 3.3% and 17.9%, respectively. The net income comparison highlights Tesla’s supremacy even more. GM’s net income increased from $6.2 billion to $10 billion over 10 years. Over the same time frame, Ford’s bottom line turned from a profit of $5.6 billion to a loss of $2 billion.
Tesla has increased its net profit from a negative $0.4 billion to $13 billion. It now makes more money than GM and Ford combined.
The comparison caught the attention of none other than Musk and he mused, “How times have changed.”
Why It’s Important: The lead Tesla has over its legacy counterparts which are taking baby steps toward electrification is only going to grow, provided it can continue to execute. The company has had a head start and is way ahead of the rest of the pack, which is trying to make meaningful inroads into the industry. Tesla also has other subsidiary businesses, including energy and insurance, and it has the most extensive charging infrastructure and network which is an added advantage for vehicle sales.
From the profit perspective, the scale of operation and geographically well-diversified production give the Austin, Texas-based company an edge.
Ford and GM, therefore, have a lot of catchups to do if they have to pose a potent threat to Tesla.
Tesla closed Friday’s session down 5.03% at $196.89, according to Benzinga Pro data.
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