The latest financial reports are out, revealing that Tesla and Mercedes-Benz had nearly identical earnings last year.
Numbers at a Glance
- Mercedes-Benz: €14.26 billion ($15.47 billion) earned in 2023, marking a 1.7% decline compared to the previous year.
- Tesla: $15 billion earned in the same period, showing a significant 19% improvement.
Valuation Contrasts
Despite similar earnings, the valuation for each company paints a different picture:
- Mercedes: Valued at €71 billion, or about $78 billion.
- Tesla: Valued at a whopping $617 billion, even with a 22% stock price dip this year.
Market Movements
Mercedes stock saw an upward trajectory on Thursday, driven by a new stock buyback plan worth up to €3 billion.
Future Growth Prospects
Analysts have high hopes for Tesla, predicting substantial sales growth compared to Mercedes:
- Tesla: Expected sales growth of 81% by 2027.
- Mercedes: Estimated sales growth of only 11% in the same period, according to FactSet data.
Industry Challenges
While Tesla faces the challenge of meeting high sales expectations, Mercedes has its own hurdles to overcome:
- Tesla has the advantage of not needing to handle factories for combustion engine vehicles.
- Even though the transition to electric vehicles is slower than anticipated, Mercedes-Benz CEO Ola Kaellenius confirms that they will continue producing combustion engines well into the next decade.
