Bernstein analysts have debated the $649 billion gap in market capitalization between Tesla Inc. (NASDAQ:TSLA) and Chinese EV giant BYD Co Ltd (OTC:BYDDF).
What Happened: The analysts argue that BYD is a wiser investment despite Tesla’s 120% share price surge in 2023. They are struggling to justify the valuation gap, considering the companies’ similar revenues, EV sales, and profits, Forbes reported.
Despite a year-to-date decline in earnings, Tesla’s market cap sits at around $730 billion. In contrast, BYD, whose profits more than doubled this year, is valued at $84 billion.
Bernstein analysts foresee a gloomy future for Tesla with a projected $150 price target for its shares, which indicates a potential 40% slump. In contrast, they set a $46 price target for BYD, predicting a 60% surge. The analysts expect the valuations of Tesla and BYD to converge ...