Tesla has made Fortune’s list of the 100 fastest-growing companies in 2023 for the first time. The Texas-based automaker is ranked No. 2 on the list, which includes 22 companies.
According to Fortune, many factors contributed to Tesla’s appearance on the list. However, topping the list is the fact that the company’s earnings per share have increased by an average of 285% over the past three years. Fortune ranks the companies on its list based on three components: Earnings per share, revenue growth and total return.
Tesla’s revenue growth has been exponential over the past three years through 2022. In 2020— – at the height of the pandemic — Tesla reported annual revenue of 31.54 billion, up 28.31% from 2019. In 2021, Tesla’s annual revenue was $53.82 billion, and in 2022, the electric car maker’s revenue rose to about $81.5 billion — up 51% from the previous year.
According to Finance Charts, one of the bulls’ arguments for TSLA is the company’s 3-year total return of 51.63%, which is better than that of the sector (40.21%). At the time of writing, TSLA’s total return is -4.49% over the last 12 months. Tesla’s total return this year is 72.45%.
During Tesla’s recent press conference, Tesla CEO Elon Musk tempered growth expectations for the company in light of rising interest rates. Previously, Tesla had targeted 50% year-over-year growth for the third quarter of 2023 before its earnings announcement.
““Yeah. I mean, the risk of stating the obvious: it’s not possible to have a compound growth rate of 50% forever, or you will exceed the mass of the known universe. But I think we will grow very rapidly, much faster than any other car company on Earth, by far,” replied Elon Musk, a retail investor question, during the latest earnings call.