|
Stop
cringing, you know you cracked a smile. Yesterday, electric automaker
Tesla officially became the most valuable car manufacturer in the world
after blowing by Toyota. Its stock, which has more than doubled since
the start of the year, hit an all-time high to push Tesla’s market cap
past $207 billion.
To put that
in perspective, Tesla is now more valuable than Honda, Ferrari, BMW, GM,
Nikola, and Nissan...combined. Some more perspective: Tesla produced
about 103,000 vehicles in Q1—Toyota made 2.4 million over the same three months.
- But to investors, growth
potential > current production and Tesla is certainly growing. It
delivered 367,500 vehicles in 2019, 50% more than in 2018.
Which is good because...
Electric
vehicles are expected to dominate the auto market in coming
years—BloombergNEF predicts 58% of passenger vehicle sales worldwide
will be electric in 2040. And Tesla, with its estimated 60% share of the U.S. EV market, is well-positioned to capitalize, having built a significant advantage in areas where traditional automakers struggle.
-
Tech: “They have an amazing software
advantage over everyone else,” Ark Invest analyst Tasha Keeney told
CNBC (Ark Invest is a Tesla investor). The automaker has released over
300 software updates since 2011.
-
Battery: Tesla batteries recently broke the 400-mile per charge threshold, 100 miles better than its closest competitor.
Zoom out: The
wider U.S. auto market is struggling just as Tesla engages Ludicrous
mode. U.S. vehicle sales for GM, Toyota, and Fiat Chrysler dropped by over 30% each in Q2 as fleet sales to governments and businesses froze.
Bottom line:
It’s hard to believe but Tesla still isn’t listed on the S&P 500.
The major index requires a company to post four consecutive quarters of
accumulated profit, which Tesla has yet to achieve. But it’s right on
the verge of inclusion after three straight profitable quarters.
|
I AM A REPUBLICAN BORN AND BRED
IN AMERICA .I BELIEVE IN EQUALITY AND JUSTICE AND THE CONSTITUTION OF THE UNITED STATES.I SERVED IN THE UNITED STATES AIR FORCE
MAJORED IN GEOLOGY AND MUSIC AND WENT TO ANGELO STATE IN SAN ANGELO, TEXAS
No comments:
Post a Comment