Better Buy: Tesla vs. General Motors
It's hard to compare Tesla (NASDAQ: TSLA) and General Motors (NYSE: GM) today given how the market is viewing the two companies. Tesla has a market cap of $783 billion on revenue of $28.2 billion (a price to sales multiple of 28), and net income of $556 million over the last twelve months. GM has a market cap of $72 billion with revenue of $116 billion (a price to sales multiple of 0.6), and net income of $3.4 billion over the same timeframe.
Tesla delivered an impressive 499,550 vehicles globally in 2020, but GM delivered 2.5 million vehicles in the U.S. alone, and 2.6 million in China, two of its biggest markets. For now, GM is a much larger auto stock operationally, but far less valuable. Is Tesla overvalued, is GM undervalued -- or will Tesla continue to crush its biggest rival on the market? Let's compare where these two companies are headed.
Image source: Getty Images.
Source Fool.com
