I agree with the sentiment that comparing Tesla's market cap with traditional car companies is inaccurate. For certain companies, market capitalization is a go

I agree with the sentiment that comparing Tesla's market cap with traditional car companies is inaccurate. For certain companies, market capitalization is a good proxy for enterprise value, but as this poster is mentioning, that's not always the case for companies with debt. enterprise_value = market_cap + debt - cash Looking at the market caps of long-standing US car manufacturers is doubly problematic cause they have significant pension obligations. They're producing cars to build shareholder value and pay for retirements. Comparing market capitalizations of companies that have completely different debt / pension obligations is misleading.