Tesla Earned More Annual Net Income Last Year Than Ford and GM Combined

Here’s another major reason to own Tesla stock: Tesla earned more annual net income in 2022 than Ford and GM combined.

Tesla Has Surpassed Ford and GM In Terms of Profitability

Twitter Influencer Charlie Bilello posted an interesting tweet tracking the revenue and net income of Tesla, Ford, and GM over the last 10 years. The results were absolutely shocking!

That’s when Tesla CEO Elon Musk replied to the shocking data with his own personal touch.

If trends continue then Tesla could generate more revenue than Ford and GM combined over the next 5 years. Legacy automakers haven’t transitioned to EV sales fast enough and could be left in the dust by innovative companies such as Tesla.

Why Tesla Continues to Outpace Ford and GM

There are several reasons why I believe Tesla has grown revenue aggressively while staying highly profitable:

  • Focusing on EV sales only: Tesla chooses to focus 100% of its efforts on electric vehicles instead of chasing short term profits with ICE vehicles. That gives Tesla the edge because focus yielding better results.
  • Selling cars at a premium price: Tesla sells an expensive product that produces higher margins than any other auto makers. In Tesla’s Q4 2022 earnings call, Elon Musk said Tesla’s 17% operating margins are the best in the entire auto industry.
  • Zero Advertising Budget: Tesla refuses to spend money on advertising unlike most automakers. This has helped the company save money and build up a massive $22 billion cash stash on its balance sheet.
  • New Innovative Products: Tesla continues working on new and upcoming products like the Cybertruck, Semi, and Tesla bot. Innovation is at the core of Tesla’s strong stock performance.
  • Using Social Media to Boost Sales: Elon Musk has over 160 million Twitter followers and uses the platform to generate free publicity for Tesla. It’s also one of the reasons why he acquired the platform. Twitter could advertise Tesla products for free since Elon Musk bought the social media platform in 2022.

It looks like smooth sailing for Tesla in the future. Perhaps Elon Musk may be right on his ambitious goal to make Tesla worth more than Apple and Saudi Aramco combined by the end of this decade.

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