WTF. How is Tesla worth more than Toyota?

How does a car manufacturer that made 400,000 cars in 2019 (Tesla), become more valuable in terms of its market cap than another manufacturer (Toyota) that made 10.7 Million cars in the same year?

Last year (2019) Prime Minister Scott Morrison oversaw a Research Report into the Digital Economy in order to find the best opportunities for small to medium enterprise across Australia and New Zealand (SME’s in ANZ).

The report found you cannot  “differentiate the digital economy from the broader economy; in other words, the digital economy is the economy”.

According to the same report the answer is that the “growth in digital technologies – and availability of the data that supports them – has enabled a range of new business models, products and insights” that are paving the way for new trade opportunities.

In the case of Tesla vs Toyota, investors are seeing it. The world over.

The answer to the original question, of how that can happen, is actually very simple, and that is Tesla vs Toyota is not apples for apples. The two companies, and all of the intellectual property and assets that are valued within them, are very, very different.



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