Some investors think General Motors and Ford might be better off dead. But the S&P 500 automakers are still beating Tesla where it counts.
GM and Ford's just-reported first-quarter revenue both topped Tesla's. Their first-quarter net income also did, too. And it's not just a lucky quarter for the old-school automakers. Analysts think GM and Ford's profit growth this year will top Tesla's as well, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge.
It's all about consumers' fizzling infatuation with all-electric vehicles. Even GM's stock is outperforming Tesla's this year.
"U.S. consumer adoption of hybrid vehicles is outpacing that of electric vehicles (EVs). In fact, sales of new hybrid vehicles surged by 63% in 2023, surpassing the 51% growth of pure battery EVs, and total hybrid sales volume of 1.42 million units exceeded EV sales of 1.08 million units," said CFRA's Garrett Nelson. "Automakers are adjusting by moderating their EV growth plans and pivoting toward bringing more hybrid models to market."
Tesla Worth $517 Billion?
And that's the paradox. Tesla is still trading like its business is blowing GM and Ford away. But it's not.
Lingering hopes for Tesla prop its market value to $517.1 billion. That's more than 900% higher than GM's value. Additionally, Tesla trades for 41.5 times its trailing adjusted profit. GM, on the other hand, trades for less than six times profit.
But the economics question investors' faith in Tesla. This year, analysts think Tesla's profit will plunge 17%. Meanwhile, GM's profit is seen rising nearly 23% and Ford's holding flat.
To be fair, analysts think Tesla's growth will resume in 2025. They're calling for adjusted earnings per share to soar more than 40% next year.
But for now, GM and Ford are showing Tesla how it's done.
GM And Ford Outdo Tesla
| Measure | GM | TSLA | F |
|---|---|---|---|
| 2024 revenue ($ millions, est.) | 175,716 | 98,950 | 170,768 |
| 2024 net income ($ millions, est.) | 10,704 | 9,108 | 8,062 |
| First quarter revenue ($ millions) | 43,014 | 21,301 | 39,890 |
| First quarter net income ($ mil.) | 3,042 | 1,536 | 1,985 |
| Market value ($ millions) | 51,434 | 517,064 | 51,700 |
| P/E (trailing) | 5.6 | 41.5 | 13.3 |
| 2024 revenue growth (est.) | 2.3% | 2.4% | 2.9% |
| 2024 EPS growth (est.) | 22.8% | -17% | 0.00% |
| Year-to-date stock % ch. | 26.9% | -33.5% | 4.0% |
