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Tesla and Mercedes-Benz earned almost exactly the same last year. Their stock-market valuations are slightly different.

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The numbers are in, and the earnings last year from Tesla and Mercedes-Benz are almost identical.

The German automaker said it earned €14.26 billion ($15.47 billion) in 2023, a decline of 1.7% from last year. Tesla, meanwhile, earned $15 billion, a 19% improvement.

What’s different of course is valuation. Heading into Thursday, Mercedes
MBG,
+4.72%

was valued at €71 billion, or about $78 billion. Tesla
TSLA,
+0.52%
,
meanwhile, is valued at $617 billion, even with a 22% stock price decline this year.

Mercedes stock was climbing on Thursday, thanks to a new stock buyback plan of up to €3 billion.

Granted, analysts are expecting a lot more sales growth out of Tesla. Tesla’s sales are seen rising 81% by 2027, compared to 11% for Mercedes, according to FactSet.

Tesla also doesn’t have Mercedes’s problem of what to do with factories for combustion engine-fueled cars, though the switch to EVs is taking a lot longer than many imagined.

Mercedes-Benz CEO Ola Kaellenius said Thursday that the German automaker will be able to produce combustion engines well into the next decade, according to Reuters.

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