Elon Musk’s Tesla Becomes One of the World’s Largest Car Companies

A Semafor story about the United Auto Workers (UAW) strike against America’s three big car makers pointed out that Tesla was among the 10 largest car companies in the world based on revenue. That is extraordinary because Tesla sells only electric vehicles (EVs). (This is the most dependable car brand in America.)

It did not take Tesla long to take its position based on revenue. Its first car did not come to market until 2006. Most other car companies on the “largest list” were founded over a century ago.

Tesla’s revenue was $98 billion in the most recent four quarters. At the top of the list, Volkswagen had revenue on the same basis of $321 billion, followed closely by Toyota at $284 billion. The largest U.S. companies on the list were Ford and General Motors, tied for third place with revenue of $170 billion.

Tesla’s revenue is large enough and growing fast enough that every car company in the world is chasing it. Tesla’s automotive revenue is growing about 25% year over year. At that pace, its revenue will reach $150 billion in two years.

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Tesla’s auto production is also rising quickly. In the most recent quarter, production totaled 480,000, up from 258,000 in the same quarter the year before.

While most large car companies rarely sell EVs, Tesla has the market EV share leadership by far. (The exception is in China, the world’s largest car market, where the leader is local BYD.)

Almost certainly, Tesla will work its way up the top 10 car companies based on revenue and could be in the top five within a few years.

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