Electric vehicle (EV) momentum generated automaker growth in 2023 and EV sales globally jumped 35% over 2022, according to the IEA. Companies made deep investments, retooled production lines and incorporated new battery technology. Social messaging supported the endeavor to combat climate change.
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It’s been a rough ride getting there. During the pandemic, auto dealers commanded premiums due to semiconductor chip shortages. When the situation normalized, dealers struggled with an increasing number of unsold vehicles. Research firm McKinsey noted that nearly 50% of U.S. drivers would not repeat their EV purchase. By early 2024, automakers were reconsidering their net-zero plans.
Inventory levels have surged above the 60-day industry standard several times in 2024, according to Cox Automotive. Automakers responded by slashing prices driving prices to a two-year low, but early adopters are seeing their vehicles’ value diminish and are likely to see it fall further as EVs are still priced too high. Kelley Blue Book revealed that the average EV transaction price was $56,520 in July, and consumer demand was strongest for models priced under $40,000. Federal tax credits, up to $7,500, kept inventory moving but did not relieve the backlog.
Demand for lower-priced EVs has intensified competition, particularly from China. It also created new global opportunities for market leaders like Tesla Inc. (ticker: TSLA). Consumer attitudes toward EVs remain volatile, but younger buyers still hunger for models delivering eco-friendly innovation and exceptional design.
The 10 most valuable auto companies are:
| CAR COMPANY | MARKET CAPITALIZATION* |
| Tesla Inc. (ticker: TSLA) | $689.6 billion |
| Toyota Motor Corp. (TM) | $247.7 billion |
| BYD Co. Ltd. (OTC: BYDDY) | $92.7 billion |
| Ferrari NV (RACE) | $85.5 billion |
| Mercedes-Benz Group AG (MBG.DE) | $73.3 billion |
| Porsche Automobil Holding SE (OTC: POAHY) | $71.2 billion |
| Bayerische Motoren Werke AG (OTC: BMWYY) | $58.7 billion |
| Xiaomi Corp. (OTC: XIACF) | $57.3 billion |
| Volkswagen AG (OTC: VWAGY) | $56.6 billion |
| General Motors Co. (GM) | $52.5 billion |
*As of Aug. 21 close.
10. General Motors Co. (GM)
General Motors rejoined the Top 10 list with a $52.5 billion market capitalization. GM was the first major automaker to plunge headfirst into EVs and aims to phase out internal combustion engines by 2035. The company adjusted its EV timeline due to slowing consumer demand, economic uncertainty and labor challenges from punishing union strikes.
Founded in 1908 by William Durant as a holding company for Buick, GM grew rapidly through acquisitions and went public in 1916. In 1921, GM’s innovation led to the patenting of leaded gasoline as an anti-knock agent. Once a symbol of American spirit, GM’s dominance declined due to globalization and the 1990s recession. The launch of the EV1 in the 1990s was short-lived, and in 2009, after receiving $17.4 billion in bailouts, GM declared bankruptcy, preserving over 1 million jobs and nearly $35 billion in tax revenue.
Mary Barra took the helm as CEO in 2014, seeking to steer the company to become a standard-bearer in the EV market. GM introduced the Chevrolet Bolt, the first mass-market EV and invested in Cruise, the autonomous ride-sharing company. Despite progress, the writing was on the wall in 2021 to scale back ambitions.
Today, GM ranks No. 25 on the Fortune 500 and No. 50 on the Fortune Global 500. Earnings have risen 12.7% year over year across brands like Buick, Cadillac, Chevrolet and GMC. GM has partnered with Lithium Americas Corp. (LAC) to expand EV battery capacity. The company faces challenges in China and has written down a $600 million charge for its Cruise autonomous vehicle unit. GM delivered 22,000 EVs, representing 40% growth compared to the industry’s 11% growth. Despite this, GM announced over 1,000 job cuts to streamline operations.
9. Volkswagen AG (OTC: VWAGY)
Founded in 1936 and headquartered in Wolfsburg, Germany, Volkswagen is famous for the iconic Beetle. Another popular vehicle, the Microbus, was reimagined in 2022 as the electric “ID Buzz.”
Volkswagen’s stock has declined since its March 2021 entry into EVs. Like its peers, the company has faced declining Chinese sales and supply chain issues throughout 2022. While separate concerns, Volkswagen is intertwined with Porsche and the overlap amplifies its challenges. Volkswagen owns prestigious brands including Audi, Lamborghini, Bentley and Porsche, but has not been able to garner significant market share in the highly competitive Asian markets.
Volkswagen’s ID.2 concept, its most affordable EV priced under 25,000 euros, has been spotted in testing signaling the brand’s future direction. Patient buyers are delighted with a partnership with Rivian Automotive Inc. (RIVN) that has enabled the electrified VW Golf to be ahead of schedule. The Trinity EV was expected to redefine the company, but the project has been significantly delayed until 2032 and the $2.2 billion factory plans have been scrapped.
8. Xiaomi Corp. (OTC: XIACF)
Xiaomi Corp. is new to the list, with a $57.3 billion market capitalization. Headquartered in Beijing, this Chinese company is best known as the world’s second-largest smartphone manufacturer, behind Samsung. Founded in 2010 by serial entrepreneur Lei Jun, Xiaomi has been dubbed the “Apple of China.” Xiaomi was the youngest company to join the Fortune Global 500 and went public in June 2018 on the Hong Kong Stock Exchange.
Xiaomi entered the EV market in March 2021 with a $10 billion investment, acquiring Deepmotion for $77 million in July. Xiaomi Auto unveiled the SU7, its first EV, in late 2023 and launched the following March in Beijing. Xiaomi’s stated intent has been to become one of the top five automakers globally. Growth and momentum investors are chasing it as they seek to catch the wave on China’s economic rise.
7. Bayerische Motoren Werke AG (BMW.DE)
The BMW Group, based in Munich, includes the BMW, Mini and Rolls-Royce brands, along with motorcycle production and financial services.
BMW began 2024 strongly after losing nearly $9.7 billion in market capitalization. Facing the same headwinds as its peers, BMW has maintained a disciplined approach, delivering over 1.1 million units since 2022 and consistently tracking earnings goals. BMW saw a 2.5% sales increase across its brands in Q1 2024, though it remains cautious about rising expenses from its battery electric vehicle line and profit margins.
China makes up a third of BMW’s global EV sales and is a key growth market. BMW is expanding production and building a new battery plant in Shenyang to support its 2026 Neue Klasse EV models. The Neue Klasse, rooted in the 1960s BMW 1500, represents BMW’s future vision for “digitalization, electrification and sustainability,” with six new models planned over 24 months. BMW is hedging its bets by creating multiple versions of the same car across the board.
BMW continues to engage its target market, returning to racing in 2026 with the M2. At this month’s Monterey Car Week, Rolls-Royce unveiled the pre-sold Phantom Scintilla Private Collection and the one-off Spectre Semaphore EV, its first and only Rolls EV. BMW also introduced an M5 Touring plug-in long-range hybrid for the U.S. and auctioned a one-of-a-kind 2025 BMW M5 Pebble Beach Concours d’Elegance #1/1 for charity.
6. Porsche Automobile Holding SE (OTC: POAHY)
Stuttgart-based Porsche, a 93-year-old German automaker, is best known for the iconic 911. It struggled in the 1990s with high costs, seeing production drop to 15,000 units. The Boxster reinvigorated the brand by attracting younger buyers. Recently, Porsche marked 50 years of the 911 with a limited run of 1,974 units of the 2025 911 Turbo 50 Years.
Since October 2023, Porsche has lost $16.47 billion in market value due to supply chain issues and a weak global economy. Once a bright spot for Volkswagen, Porsche now faces investor concerns due to their complex relationship, despite trading separately.
In July, a supplier issue forced Porsche to cut production by over 10,000 units, leading to a 4.8% sales drop and a 42% fall in shares. The company is working to secure new aluminum supplies, restore production and adjust its EV goals, particularly for the Macan. CFO Lutz Meschke remains optimistic about future profits. Porsche also disappointed fans by formally dropping plans to rejoin Formula One, although it remains committed to Formula E, highlighting electric-vehicle performance.
5. Mercedes-Benz Group AG (MBG.DE)
Mercedes-Benz Group, formerly Daimler AG, was founded in 1926. It rebranded in 2022 to focus on EVs and boost its valuation. Known for producing Mercedes-Benz, AMG, Maybach and EQ vehicles, the German automaker has rebuilt its luxury brand status after years of stock declines.
Mercedes-Benz’s momentum stalled recently after iconic Formula One driver Lewis Hamilton announced his 2025 move to Ferrari. Despite increasing its market cap from $72.39 billion in 2023, analysts are cautious about Mercedes’ near-term stock due to Hamilton’s departure and potential sponsorship losses.
Mercedes is focused on electrification, with models like the off-road-capable G-Class G580 and the all-electric AMG GT 63 S rivaling the Porsche 911 Turbo S. In 2023, the company debuted the hybrid McLaren Artura supercar in 2023, showcasing both progress and still-to-be realized potential. It will introduce the opulent Maybach SL 680 Monogram Series in 2026, followed by the fully electric Maybach EQS SUV, reinforcing both its luxury and ecological commitments.
Mercedes is also engaging younger consumers through influencer marketing and experiential collaborations, such as being the official patron for the AIG Women’s Open at St. Andrews, blending golf, fashion and cars with stylist Imruh Asha’s creativity.
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4. Ferrari NV (RACE)
Enzo Ferrari founded his luxury sports car company in Maranello, Italy, in 1939. Celebrating 85 years, Ferrari has delighted and enthralled racing fans, especially in Formula One, where Scuderia Ferrari reigns. Known for high-value sports cars, Ferrari’s global brand recognition is among the strongest.
Ferrari follows a low-volume, high-profit luxury model, selling around 8,400 cars annually. However, in 2022, Ferrari delivered 13,221 cars, followed by 13,663 in 2023, with profits rising 34% to 1.257 billion euros, marking the first time Ferrari crossed the 1 billion euros mark. Its market cap grew from $57.2 billion in 2023 to $85.5 billion in 2024, surpassing Porsche.
Ferrari famously spends nothing on advertising, relying on its performance on the race track to speak for itself. The brand’s dedication to elite racing has also produced elegant sports cars that hold their value remarkably well for collectors. Ferrari’s stock soared when it signed Lewis Hamilton for the 2025 Formula One season, adding $7 billion to its market cap and hitting the all-time high for its shares.
Ferrari continues to innovate, planning its first all-electric model in 2025, priced at $535,000, and launching a new E-facility near Maranello. The 2024 Purosangue SUV, a 715-horsepower four-seater, lists for $402,050. All models are sold out through 2025.
Investing in Ferrari also offers the unique potential for both stock and product appreciation. On Aug. 20, the very first 1960 Ferrari 250 GT California By Scaglietti was publicly sold for $17,055,000 at Monterey Car Week. Chassis 1795 GT, one of just 56 produced, was crafted in the same Maranello facility as all the prancing horses that came after it and exemplifies the enduring value of Ferrari’s master craftsmanship.
3. BYD Co. Ltd. (OTC: BYDDY)
BYD, short for “Build Your Dreams,” is a Chinese automaker founded in 1995 by Wang Chuanfu in Shenzhen. Initially a mobile battery maker, BYD has expanded into budget-friendly EVs, trucks, buses, solar panels and monorails. In 2022, BYD fully shifted to EVs, using vertical integration to control its battery supply, similar to Tesla. BYD brings a deep knowledge of the most critical component of electric applications — the battery — and relies on an internal supply of components.
Though Tesla’s market cap remains almost nine times larger, BYD briefly overtook Tesla in global EV sales in late 2023. Tesla quickly regained its sales leadership, but BYD continues first-mover position in many populous markets like Pakistan. The company has its sights set on the U.S. market, but faces market challenges due to trade concerns that have led Warren Buffett to reduce his stake in the company in support of the U.S. trade position. In August, the EU proposed a more favorable reduction of trade tariffs on Chinese imports. BYD received a 17% proposed tariff, while Tesla was offered a more favorable 9% proposed tariff.
BYD surprised the global supercar market by launching the Yangwang U9, its first electric supercar. BYD is the first Chinese automaker to test at the German Nurburgring in order to benchmark the U9’s performance against its competitors. With 1,200 horsepower, the $233,000 U9 has a 0-to-62 miles per hour acceleration time of 2.36 seconds, faster and significantly less expensive than comparable Ferraris and Lamborghinis.
BYD’s new U9 has a top speed of 192 mph, and the company’s growth trajectory has been equal to the task. Yet, BYD’s stock is still considered undervalued, drawing interest from value investors.
2. Toyota Motor Corp. (TM)
Toyota had long held the crown as the world’s most valuable car company, but was toppled by Tesla in 2020. Created in 1937, this Japanese company is headquartered in the eponymous city of Toyota in the Aichi prefecture and includes Lexus, Subaru and Suzuki among its marques.
Toyota brought the Prius to market worldwide around the turn of the century as one of the first hybrid vehicles, and it became the darling of U.S. environmentalists and eco-conscious consumers. Over time, these voices reversed course and decried hybrids. Toyota found itself at the bottom of automaker lists for its lack of decarbonization efforts.
Chairman Akio Toyoda held fast to his opinion that the world’s global share of EVs would top out at just 30% because of breakthroughs in hybrids, hydrogen fuel-cells, alternative green fuels and other concepts that are still in the conception stage. Toyota rose to the challenge and responded with the 2024 Prius hybrid, praised for its sleek design and 57-miles-per-gallon fuel efficiency. This success led the company to announce plans to phase out most internal combustion engine models in favor of hybrids for both Toyota and Lexus brands.
From an investor’s standpoint, this powerful positioning and solid sales growth has not translated to the bottom line. Toyota’s stock dropped significantly in early August due to a stronger yen, U.S. economic concerns and slow deliveries. The company projects a 2% revenue decline and up to a 30% drop in net profit, with supply chain issues adding to the challenge. As a result, while holding a solid second position, market capitalization growth was relatively flat in the past 10 months.
Despite recent scandals, including a safety recall, certification irregularities and a major data breach, Toyota remains a strong option for value investors with its continued focus on sustainability and positive reviews for its flagship models.
1. Tesla Inc. (TSLA)
Tesla continues to surprise, delight and disappoint as it has journeyed from the early days of its sublime Roadster to a conglomerate representing a full line of EVs, including semi-trucks. The company continues to position itself beyond the constraints of a car company, aiming to build a sustainable planet through renewable energy, storage, AI and connectivity.
Tesla’s market cap surged in 2023, but lagging profits and weak deliveries have caused the stock to dip in 2024. The stock rose after the EU approved a 9% tariff on Chinese EV imports, giving Tesla a pricing advantage over competitors facing higher tariffs.
As Tesla decouples itself from many of the market fundamentals, analysts have mixed perspectives:
— Positive reviews come from analysts who still recognize that Tesla actually makes money. They are focused on the company’s growth, with a proposed debut of robotaxis in mid-October, as well as the potential for the licensing of its self-driving technology. In July, the Chinese government authorized Tesla cars as official government vehicles, the only foreign-owned EV car brand to hold this approval. Tesla’s largest Gigafactory outside the U.S. is located in Shanghai, producing almost 1 million cars a year, representing 25% of Tesla’s revenue.
— Negative outlooks focus on declining EV enthusiasm as competition increases, most notably from BYD. Tesla’s total EV market share has dropped from 63% to 50%. High interest rates have put many buyers on hold, especially in light of Tesla’s decision to eliminate its $61,000 entry-level Cybertruck. Tesla’s quality advantage has slipped, putting its cars on-par with traditional vehicles. Forward sales are trading significantly higher than its competition, creating question marks around Tesla’s current valuation.
Tesla’s future continues to be bright, despite the constant spotlight on the company. The company broke a key stock support level in mid-August, crossing its 200-day simple moving average and pointing toward a continued bullish trend. Investors will also be looking to see if Tesla can continue to bring both value and excitement in light of the divergent paths proposed by the candidates in this year’s U.S. presidential election.
Tesla not only desires to retain its No. 1 ranking on this list, but it wants to do so with a bit of flair and fun. To that end, the long-awaited Tesla Diner and Drive-In in Hollywood is close to completion. Designed as a “golden age” dining experience, CEO Elon Musk has long envisioned it as the ultimate gathering place for Tesla owners.
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The 10 Most Valuable Car Companies in the World By Market Capitalization originally appeared on usnews.com
Update 08/22/24: This story was previously published at an earlier date and has been updated with new information.
