Prior to a midday sell-off on Friday, Tesla Inc (TSLA) briefly passed BMW in terms of market share, staking its claim among the most valuable auto manufacturers in the world. Tesla is unique among most auto peers in that the majority of its market valuation comes from future projections rather than current production. Investors are assigning a tremendous value to Tesla’s future growth potential, sending Tesla’s stock soaring more than 69 percent so far in 2017. However, even after that impressive run, Tesla is nowhere near the top spot among global auto makers in terms of market cap. Here’s a look at the top 10.
- Renault: $26.7 Billion
French auto company Renault has shares listed on the European Euronext market at a market cap of $27.8 billion. The Renault Clio IV, Captur and Megane IV were among the top-selling models in France in 2017. Despite a 2.7 percent increase in revenue and a 112.5 percent increase in net income in the past three years, Renault’s market cap has dropped 3.3 percent in the that time. Renault is looking to the future by collaborating with Nissan to “develop a comprehensive, modular transportation system to enable clients to book rides and mobility operators to monitor and operate self-driving car fleets.”
- Nissan: $37.2 billion
The price-to-earnings multiple contraction that has impacted the rest of the traditional auto industry in recent years has hit Nissan as well The company’s market cap has drifted lower by 2.7 percent in the past three years despite a 40 percent rise in revenue and a 56 percent rise in net income. In addition to the driverless car partnership with Renault, Nissan is looking to the future with its Leaf electric car. The Leaf was released back in 2011 and is the best-selling electric vehicle of all-time, with more than 250,000 models sold as of January 2017, according to MotorTrend.
- Ford: $44.3 billion
Ford Motor Company (F) has been one of the pillars of the Detroit-based U.S. auto industry since its inception more than a century ago. However, Ford’s net income declined by 35 percent in the first quarter of 2017 and is now down 67.3 percent in the past three years. Despite 4.5 percent revenue growth in that same period, Ford’s market cap has declined 34.3 percent. New CEO Jim Hackett is leading a turnaround effort that includes bringing a fully driverless car to market by 2021. At a forward PE of only 6.8, Ford could be…
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