Just as with the rest of tech, growth, and the broader market, Tesla, Inc. (TSLA) has seen its fair share of volatility lately. Even with its roller coaster price action, the electric vehicle (EV) maker has been able to sustain a high valuation, in relation to its sales. The question then begs, is it overvalued or undervalued? Could the stock see further upside? The story becomes more visible when comparing it to its peers’ performances.
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In regard to the competition’s revenue multiples, Tesla is currently trading at about 16 times the price of Toyota, while producing one tenth the amount of vehicles per year. Investors and analysts alike foresee Tesla ramping up production this year with its now operational Austin and Berlin gigafactories, and the automaker has been expanding its network of supercharger infrastructure.
Tesla’s full self-driving (FSD) service is expected by some to boost its gross margins, which are already the best in the industry. Furthermore, the company has recently been expanding its workforce and strengthening its balance sheet.
It is important to note, however, that over the last year, Tesla’s gains have been outpaced by other players like Ford (F). This metric shows that Tesla has not been nearly as explosive in recent quarters as some skeptics may think.
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