"Revenue of $96 billion trailing twelve months with 12% growth and 7% operating margin doesn't support this valuation. To reach $10 trillion, Tesla needs a 553% gain. At current growth rates, that's not happening through car sales alone. The bull case hinges on robotaxis and energy storage, where revenue grew 44% year over year. But even if those bets pay off, Tesla is starting too far behind with margins too thin."
"But 11% operating margins mean every dollar of revenue growth translates to less profit than competitors. Amazon needs a 313% gain to hit $10 trillion. AWS generates $33 billion in revenue with 20% growth, but it's not growing fast enough to carry the entire company. The forward PE of 28x suggests steady growth ahead, not the explosive trajectory needed for $10 trillion. Amazon will be massive for decades, but the path requires margin expansion that conflicts with its core retail model."
Six companies sit within striking distance of a $10 trillion valuation, with sustained nation-scale growth and operating margins as the decisive factors. Tesla sits at $1.53 trillion with $96 billion trailing revenue, 12% growth and a 7% operating margin, requiring a 553% gain and relying on robotaxis and energy storage to bridge the gap. Amazon has $691 billion in trailing revenue but only 11% operating margins, needs a 313% gain, and sees AWS ($33 billion, 20% growth) insufficient alone without margin expansion. Alphabet at $3.75 trillion shows stronger growth and margins, improving its prospects.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]