Leading American automaker Tesla is apparently on track to surpass its closest rivals Ford and General Motors in revenue by 2027, Future Fund analyst estimates. The fund manager regurgitated his sentiment that Tesla’s value should be like a technology firm rather than as an electric automaker, arguing that its 2024 consensus estimates are substantially low.
Analyst forecasts
Analyst Gary Black forecasts the Musk-led company’s 2024 volume growth to reach 53%, surpassing Wall Street’s expectations of only 27%. He further expects Tesla’s earnings per share to be $5.40, surpassing the $4.70 consensus.
In that sense, the world’s most valuable automaker will soon beat legacy automakers Ford And GM in revenue.
It must also be noted that Wall Street predicts Tesla’s annual revenue to increase 24% from 2023 to 2027. Meanwhile, Ford and GM will only witness 2% and 4% annual revenue growth, respectively.
The analyst further noted that Tesla’s revenue will surpass Ford by 2026 and GM the following year.
Analyst Gary Black contends that Tesla’s Wall Street analysis is plainly misguided. Analysts apparently disregarded the fact that Tesla will soon have multiple growth drivers.
“Future expected growth rates drive P/Es – not the category in which one competes.”
Analyst Gary Black
He further noted that the electric automaker will soon launch the revamped version of the Tesla Model 3, called Highland. It is also set to gradually mass produce the highly-awaited Cybertruck. Moreover, the company will also soon release the FSD Alpha V12 to improve its autonomous driving capabilities. Its EVs will also benefit from the US federal tax credits of up to $7,500 starting in 2024.
See Also:
- Tesla Cybertruck to become a $30B business “overnight,” tech chronicler forecasts
- Tesla beats German rivals’ combined sales in the global EV market in H1 2023
- Tesla Cybertruck on track to hit 2 million pre-orders, 5 years wait for new booking
- Tesla to license self-driving tech to a “major” automaker soon, CEO Musk confirms
- Tesla to top 1.9 million sales in 2023, Counterpoint Research estimates
Tesla’s remarkable business growth is unsurprising, given its aggressive expansion strategies. Apart from building electric vehicles, it has also penetrated multiple related industries, including charging, batteries, solar panels, etc.
All that said, Tesla may actually hit Analyst Gary Black’s forecasts, surpassing legacy automakers Ford and GM in the near future.
