Sales of durable new vehicles does not fit the definition of "annual recurring revenue" by any stretch of the imagination. ARR is valued highly because it implies steady revenue from each customer. Less the churn rate, it makes for a super steady long tail of cash flows. Once you've made a sale, you can count on that sale again the next year, and success of new sales builds on that existing base of recurring sales. These kinds of revenues tend to be more resistant to recessions, changes in preferences, etc., versus churning through new customers every year.

Car companies are the exact opposite. Sell a car? Great, you have to sell another car to someone else next year just to tread water. Your customers don't buy new cars every year. Maybe in five to ten years they'll come back to you.

That's why ARR is worth so much more, and why a durable goods maker does not get a high valuation because of their ARR. They're different business models.

In short, one can't justify Tesla's revenue valuation multiple based on multiples of ARR subscription companies.