- Tesla becomes the most valuable automobile company in the world and manages to hit new heights even despite a pandemic
Tesla manages to hit new heights even despite a pandemic.
The company, which began as a problem-plagued upstart just over 15 years ago, Tesla is now the most valuable automobile company in the world – overtaking industry giants like Toyota and Volkswagen.
This milestone comes after a year of steady growth, which only struck a speed bump earlier this year because of the negative impact COVID-19 had on new car sales. Despite these headwinds, the valuation of Tesla has jumped since last year’s time by an impressive 375 percent.
Tesla reached an impressive milestone earlier this year, surpassing the cumulative value of both GM and Ford. The stock of the automaker has continued its upward trajectory ever since.
In 2019, thanks to Model 3 ‘s popularity, Tesla sold more cars than it did combine in the previous two years.
The company is also taking big steps to increase its production capacity.
Currently, Austin, Texas, and Tulsa, Oklahoma are rolling out the incentives to attract Tesla’s new factory based in the US. With the construction of Giga Berlin, the company is also increasing its global presence, being the first European production facility, as well as completing the ongoing expansion of its Giga Shanghai facility in China.
Tesla ‘s latest price bump has been fuelled in part by a leaked internal memo from Tesla ‘s CEO, Elon Musk, urging the company’s staff to go “all-out” to bring electric semi-trucks to the global market on a scale.
Needless to say, Musk ‘s enthusiasm for semi-trucks comes from nowhere. Another venture, Nikola (also named after the famous inventor Nikola Tesla), is focused on electrifying the approximately two million semi-trucks on the US market.
Although Nikola has yet to produce a vehicle, its market cap has risen to $24 billion, almost equal to Ford ‘s valuation. Like Tesla, the company already has preorders from major companies seeking to add electric trucks to their fleets of delivery.
Zero-emission heavy-duty trucks are an easy solution for major brands looking to hit ESG targets, especially if the vehicles also live up to claims to be cheaper over the vehicle’s lifecycle. The big question is which car manufacturer will capitalize first on this mega-market?