Two Stocks That Will Outperform Tesla: Alphabet and Toyota

Tesla's valuation of over $1 trillion is at risk due to sluggish electric vehicle sales and the company's ambitious but uncertain plans for Robotaxi and humanoid robotics. Alphabet and Toyota Motor are expected to outperform Tesla in the next three years, with Alphabet being the autonomous driving leader and Toyota having the potential to overtake Tesla if it is valued more like an automotive manufacturer than a technology company.

Tesla's market valuation of over $1 trillion is under scrutiny due to recent developments in its electric vehicle (EV) sales and ambitious plans for Robotaxi and humanoid robotics. The company, led by Elon Musk, is facing challenges that could impact its stock price and market position in the coming years.

Tesla's EV sales have started to decline, which could be attributed to Elon Musk's public persona and the slow expansion of its Robotaxi business [1]. The company's focus has shifted from its core EV business to Robotaxi and humanoid robotics, which are still in early stages of development. This shift has led to a narrative that Tesla's legacy EV business may not be as strong as expected, potentially weighing on the stock price.

Alphabet, the parent company of Waymo, is currently the market leader in self-driving vehicles. Waymo has a strong business model and the financial resources to expand its autonomous ride-hailing services across the United States. Alphabet's valuation of over $2.3 trillion is already higher than Tesla's, and its strong cloud-computing and digital advertising businesses provide a solid foundation for investing in self-driving technology [2].

Toyota Motor, the world's most valuable legacy automotive company, has a market cap of just $246 billion, valuing the stock at a price-to-sales (P/S) ratio of less than 1.0, compared to Tesla's over 12 times revenue. Toyota's revenue continues to grow, and its profit margins are higher than Tesla's. If the market starts to value Tesla more like an automotive manufacturer than a technology company, Toyota could potentially overtake Tesla's valuation [2].

In conclusion, Tesla's ambitious plans for Robotaxi and humanoid robotics could take time to materialize, potentially leading to near-term struggles in EV sales and stock price. Alphabet and Toyota Motor are well-positioned to outperform Tesla in the next three years, with Alphabet being the autonomous driving leader and Toyota having the potential to overtake Tesla if it is valued more like an automotive manufacturer than a technology company.

References:
[1] https://www.mk.co.kr/en/it/11389115
[2] https://www.aol.com/prediction-2-stocks-worth-more-084000087.html