- Tesla debuted on the Fortune 100 Fastest-Growing Companies list.
- The manufacturer ranked second on the list, behind only a Texas-based construction supply company.
Fortune has published its 2023 100 Fastest-Growing Companies list. It noted that in 2021, a third of the world's 100 fastest-growing companies were from the financial sector. However, everything changed after just two years. There are now only nine financial companies on the list of the 100 fastest-growing companies. At the same time, it is noteworthy that industrial enterprises took the lead, there are 22 of them on the list.
In 2023, Tesla made its debut in the ranking, starting from an extremely high position. According to Fortune's rating, Tesla took second place, which is quite impressive. Among the factors that propelled the company to the top were earnings, which grew per share at a three-year average of 285%—the third-highest of any company on this list. The only company that has outperformed Tesla overall this year is the construction supply company, Builders Firstsource, which is also based in Texas.
This is the 38th year of Fortune's annual list of fastest-growing companies. It ranks companies based on growth in revenue, profits, and stock returns; this year’s edition tracks those metrics over the three years through June 2023. The companies featured have a combined market capitalization of $4 trillion and have delivered an average annual return of 42% to shareholders over the past three years. This significantly outperformed the S&P 500's annual shareholder return of 15% over the same period.
Manufacturing led all sectors with a three-year average annual profit growth rate of 108%. Along with Tesla in second place, a Texas company in the industrial sector also claimed third place. McKinney-based electrical equipment company Encore Wire generated nearly $3 billion in revenue in the four quarters through April 2023.
Tech giants Meta, Amazon, and Netflix did not return to the list of fastest-growing companies this year after notable declines in 2022. Alphabet also left the list this year, ending its three-year tenure on the list.
The energy sector added 10 companies compared to last year, and this year the number increased to 15. In 2021, there were no energy sector companies on the list. Daqo New Energy, a maker of silicon and polysilicon for solar panels, fell from first place on last year's list but still ranked seventh this year.
© 2023, Eva Fox | Tesmanian. All rights reserved.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.