--- title: "Tesla and Amazon are expected to lead the industrial sector" type: "News" locale: "en" url: "https://longbridge.com/en/news/285767743.md" description: "Tesla and Amazon are considered likely to lead the industrial sector, even though they are typically associated with electric vehicles and e-commerce. Tesla's industrial business, including batteries and energy storage systems, has performed exceptionally well, with revenue growth of 80%. Amazon's logistics network is viewed as a massive industrial machine, expected to reduce fulfillment costs through robotics technology. Despite the S&P 500 Industrial Select Index lagging, industrial capital expenditures are on the rise. Analysts believe that the industrial attributes of these two stocks have not yet been fully priced in" datetime: "2026-05-08T19:49:43.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285767743.md) - [en](https://longbridge.com/en/news/285767743.md) - [zh-HK](https://longbridge.com/zh-HK/news/285767743.md) --- # Tesla and Amazon are expected to lead the industrial sector When investors think of Tesla and Amazon, they usually associate them with electric vehicles and e-commerce, but another commonality between these two companies is often overlooked—they are both industrial conglomerates. With the manufacturing sector rebounding and the capital expenditure cycle accelerating, Tesla and Amazon's industrial businesses are expected to lead the industrial sector. Tesla: More than just cars Tesla's industrial attributes are often overshadowed by its automotive business. The company's Gigafactories in Texas and Germany produce millions of 4680 battery cells, thousands of Optimus robots, and dozens of Megapack energy storage systems each year. Tesla's energy storage business saw a year-on-year revenue growth of 80% in the first quarter, with a gross margin exceeding 20%, higher than the automotive business's 15%. The market seems to have yet to fully price in the long-term potential of the energy storage business. Amazon: The value of a logistics machine Amazon's logistics network is itself a massive industrial machine. The company operates over 200 sorting centers and 150 cargo planes. Amazon's fulfillment costs are expected to account for about 16% of total revenue by 2025, and with the application of robotics technology, management expects this ratio to drop to 13% by 2028. Analysts point out that Amazon's logistics infrastructure holds significant value in the public market. Background of the industrial sector The S&P 500 Industrial Select Sector Index has risen only about 6% this year, lagging behind the technology sector. However, the industrial capital expenditure cycle is on the rise, with durable goods orders increasing by 0.8% month-on-month in April, particularly driven by orders for machinery and electrical equipment. Earnings reports from MRO industrial product distributors indicate that demand from manufacturing clients is accelerating. Potential catalysts Tesla will hold its annual shareholder meeting in June, where it may announce the latest developments regarding the Optimus robot. Amazon may showcase the results of improved logistics efficiency during its Prime Day event in July. Analysts believe that the industrial attributes of these two stocks are still not fully priced in. Market performance On Friday's close, Tesla rose about 1.2%, while Amazon increased by about 0.8%. Year-to-date, Tesla has fallen approximately 15%, primarily affected by slowing demand for electric vehicles; Amazon has risen about 10%, outperforming the market. UBS analysts maintain a buy rating on both stocks, believing that the market is overly focused on their consumer businesses while underestimating the long-term value of their industrial operations. 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