Taking Stock 

Investments in the slipstream

Mark Robinson

Investments in the slipstream

Tesla (US:TSLA) mightn’t have been the first entrant to the electric vehicle (EV) market – the technology came into existence in the mid-19th century – but through the development of the Model-S and a range of automotive and battery products, it could be argued that it has taken pole position as an EV pure-play, together with all the advantages this is meant to confer. How else can you justify the group’s lofty valuation? Tesla is leveraged to the hilt, but trades on an enterprise/cash profit (EV/Ebitda) multiple of 17.3, against 10.3 for Toyota Motor Corp (TYO:7203) – which has committed to rolling out 10 electrified models by the end of 2020 – and an average of 5.3 for industry peers.

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