Eli Lilly (NYSE: NYSE:LLY), a pharmaceutical giant, is showing remarkable growth that could potentially eclipse the current market leader in electric vehicles, Tesla (NASDAQ: NASDAQ:TSLA), by the year 2027. With a three-year growth rate of over 300% and a market capitalization of $565 billion, Eli Lilly is closing the gap with Tesla’s slower 65% growth rate and a valuation of $745 billion.

The company’s momentum is notably driven by its diabetes treatment Mounjaro, which garnered nearly $3 billion in sales within the first three quarters of this year. The drug is not only making waves in the diabetes sector but may soon expand into the obesity market pending regulatory approval. In addition to Mounjaro, Eli Lilly is advancing other phase 3 trials and pushing through an Alzheimer’s treatment in regulatory evaluations.

Wall Street analysts are optimistic about Eli Lilly’s future earnings potential, projecting its EPS to jump from $6.90 to $17.10 by the end of fiscal 2025. This projected increase significantly outshines Tesla’s anticipated EPS growth from $3.62 in 2022 to just over $5.50.

Despite Tesla’s impressive presence in the electric vehicle market, it faces growing skepticism due to various setbacks, including criticism over its Cybertruck release. Moreover, while Tesla holds a price-to-earnings (P/E) ratio of 78, Eli Lilly’s stands higher at 110, reflecting its robust earnings outlook.

As both companies continue to innovate and expand within their respective industries, investors and market watchers are closely observing Eli Lilly’s rapid ascent as it challenges Tesla’s market position. With current trends, Eli Lilly might achieve a higher future market valuation than Tesla within the next four years.