EV is booming, in market cap and in sales.
1/ Three big markets, EU, China and US, account for more than 90% of global xEV volume; while xEV is just a bit more than 5% of global unit volume.
Global BEV+PHEV unit volume is expected to be 3.24 million in 2020, or a bit more than 5% of the overall ~60 million vehicle market globally.
Nearly 1.4 million BEVs and PHEVs were registered in Europe during 2020, 137 % more than in 2019
China alone contributed more than 1.3 million in unit volume.
US grew slow (~4%), with a bit more than 0.3 million units sold.
2/ Globally, industry valued at 8x 2022 revenue
Currently, EV companies globally have a market cap of ~$958 billion; Tesla accounts for ~2/3 of that.
Expected 2022 revenues of those EV companies sum up to $122 billion (Tesla accounts for half), while TTM revenues are ~$57 billion.
Overall EV/ ’22 Sales = 7.9x
If normalized margin is 20%, then the valuation indicates ~40x P/E.. where E is normalized 2022 level.
Source: this google sheet compiled by FT.