Cal Paterson 3/17/2024

Is Tesla really more valuable than Toyota?

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This article examines why Tesla's market capitalization surpasses Toyota's, despite Toyota's larger scale. It explains the concept of market cap and argues it's a 'vanity metric.' The piece introduces 'enterprise value' as a more accurate measure, which includes a company's debt and cash, revealing a different financial picture for traditional automakers like GM and Toyota compared to Tesla.

Is Tesla really more valuable than Toyota?

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