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Comment by mxschumacher

1 day ago

and Tesla is valued at over 21x more than GM

Sorry, I lost the thread - GM looks twice as profitable, the same profit on half the revenue

How does that justify Tesla's valuation?

Is it based on the idea that the margin can be improved?

  • > Sorry, I lost the thread - GM looks twice as profitable

    You got it reversed.

    For Q3'2025, GM net income $1.3B on $48B revenue (down 0.3% YoY). Tesla, in contrast, generated $1.5B income on $28B revenue (up 12% YoY).

    GM's income was down 56.6% while Tesla's was down 37%.

    GM had higher operating income than Tesla, however. Explained by Tesla's more aggressive investment in R&D and AI.

  • It's based on "Tesla shareholders want the stock to live in a parallel universe".