Hyperdrive
Tesla’s $1 Trillion Valuation Belies Its Revenue Position
- EV maker’s most recent annual revenue was below $50 billion
- Price-to-sales multiple is 21 compared with 8 for Facebook
Photographer: David Paul Morris/Bloomberg
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Tesla Inc. has joined the trillion-dollar-valuation club as the member with the lowest revenue.
The electric-vehicle maker’s shares have run past several milestones over the past couple weeks amid a rush of positive news, including reaching a rarefied $1 trillion in market value on Monday. That helped further bolster sentiment among investors, who are betting on Tesla’s potential for rapid future growth as EVs become mainstream and eventually replace gas-driven cars.