Tesla quickly took second place

Tesla quickly took second place

Elon Musk-led EV behemoth Tesla Inc. TSLA has made its first appearance on Fortune’s annual 100 Fastest-Growing Companies list, landing in the esteemed No. 2 spot.

According to a report by Fortune, Tesla’s earnings per share witnessed a three-year average growth rate of 285%. This is the third-highest growth rate of any company on the list. The company’s rise is only surpassed by a construction supply company, sharing the same home state with Tesla.

The top spot on the list was claimed by Builders Firstsource, the largest residential construction materials supplier in the U.S. The third spot was taken by Texas-based industrial company, Encore Wire. The only South American company to feature on the list, Sociedad Química y Minera (SQM), headquartered in Santiago, Chile, stood at No.4.

In its 38th year, Fortune’s annual list ranks companies based on revenue growth, profits, and stock returns over the last three years. In 2023, the featured companies had a combined market capitalization of $4 trillion, delivering an average annual return of 42% to shareholders. This outpaces the S&P 500 index’s 15% annual return over the same period.

Notably, tech giants such as Meta, Amazon, and Netflix did not make it to the list this year, following their drop-off in 2022. Alphabet also exited the list this year, ending a three-year streak. Despite this, the technology sector still holds a significant presence with 17 companies on the list, albeit a decrease from 21, the previous year.

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