--- title: Is Tesla really more valuable than Toyota? | daily.dev description: Market cap alone is a misleading measure of company value because it ignores debt. When comparing Tesla and Toyota, Tesla's $558bn market cap dwarfs Toyota's... canonical: https://daily.dev/posts/is-tesla-really-more-valuable-than-toyota--5aqktdhgt twitter:card: summary_large_image twitter:site: @dailydotdev og:type: website og:site_name: daily.dev og:title: Is Tesla really more valuable than Toyota? | daily.dev og:description: Market cap alone is a misleading measure of company value because it ignores debt. When comparing Tesla and Toyota, Tesla's $558bn market cap dwarfs Toyota's... og:url: https://daily.dev/posts/is-tesla-really-more-valuable-than-toyota--5aqktdhgt og:image: https://api.daily.dev/og/posts/5AqkTDHGT.png og:image:alt: Is Tesla really more valuable than Toyota? og:image:width: 1200 og:image:height: 630 og:locale: en --- > ## Documentation Index > Fetch the complete documentation index at: https://daily.dev/llms.txt > Use this file to discover all available pages before exploring further. # Is Tesla really more valuable than Toyota? **[Cal Paterson](https://daily.dev/sources/calpaterson)** · 9 min read · 0 upvotes · 0 comments ## Summary Market cap alone is a misleading measure of company value because it ignores debt. When comparing Tesla and Toyota, Tesla's $558bn market cap dwarfs Toyota's $329bn — but Toyota carries $200bn in debt versus Tesla's $9bn. Using enterprise value (market cap + borrowings - cash), Tesla ($553bn) and Toyota ($466bn) are much closer. The post explains why companies choose debt vs. equity financing, using Teledyne's Henry Singleton as a case study: Teledyne issued shares when overvalued during the 1960s conglomerate boom, then bought them back aggressively when undervalued after the bubble burst, generating exceptional returns. ## Full article daily.dev links to this article rather than hosting it. Read it at the original source: ## Similar posts on daily.dev - [TechCrunch Mobility: SpaceX rockets past Tesla](https://daily.dev/posts/techcrunch-mobility-spacex-rockets-past-tesla-pd2bjqony) · TechCrunch · 0 upvotes · 0 comments - [SoftBank overtakes Toyota as Japan’s most valuable company on the AI rally](https://daily.dev/posts/softbank-overtakes-toyota-as-japan-s-most-valuable-company-on-the-ai-rally-gieffqmca) · The Next Web · 0 upvotes · 0 comments - [Tesla secures $30B in new credit lines as it looks to scale Cybercab, Optimus](https://daily.dev/posts/tesla-secures-30b-in-new-credit-lines-as-it-looks-to-scale-cybercab-optimus-nv1mptsqj) · TechCrunch · 0 upvotes · 0 comments --- Tags: [#tesla](https://daily.dev/tags/tesla) [View this post on daily.dev](https://daily.dev/posts/is-tesla-really-more-valuable-than-toyota--5aqktdhgt) ```json {"@context":"https://schema.org","@graph":[{"@type":"Organization","@id":"https://daily.dev/#organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180},"sameAs":["https://twitter.com/dailydotdev","https://github.com/dailydotdev","https://www.linkedin.com/company/daily-dev-ltd"]},{"@type":"WebSite","@id":"https://daily.dev/#website","url":"https://daily.dev","name":"daily.dev","publisher":{"@id":"https://daily.dev/#organization"},"potentialAction":{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https://daily.dev/search?q={search_term_string}"},"query-input":"required name=search_term_string"}}]} {"@context":"https://schema.org","@type":"TechArticle","headline":"Is Tesla really more valuable than Toyota?","url":"https://daily.dev/posts/is-tesla-really-more-valuable-than-toyota--5aqktdhgt","mainEntityOfPage":{"@type":"WebPage","@id":"https://daily.dev/posts/is-tesla-really-more-valuable-than-toyota--5aqktdhgt"},"datePublished":"2026-03-31T12:29:13.480Z","dateModified":"2026-03-31T12:47:27.692Z","description":"Market cap alone is a misleading measure of company value because it ignores debt. 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