Why is Tesla's market capitalization significantly higher than other car makers?
PSA: Tesla may soon be as big as all other automakers combined – Datamentary
https://datamentary.net/psa-tesla-may-soon-be-as-big-as-all-other-automakers-combined/
Founded in 2003, Tesla is a fairly new car maker, with the first commercial vehicle, the Tesla Roadster, being shipped in 2008 and listed on the US stock market in 2010. That is.
However, in recent years, Tesla's stock price has continued to rise sharply. In December 2019, the stock price exceeded 400 dollars (about 40,000 yen), and on June 10, 2020, it exceeded the 1000 dollar (about 100,000 yen) mark at once, and the market capitalization was thin to Toyota. Finally, in July 2020, Tesla's market capitalization reached 207.2 billion dollars (about 22.26 trillion yen), surpassing Toyota.
Tesla overtakes Toyota to become the most valuable car maker in the world-GIGAZINE
Since then, Tesla's stock price has risen sharply, reaching a market capitalization of $ 515 billion (about 53.8 trillion yen) in November 2020. CEO Elon Musk has overtaken Microsoft founder Bill Gates to become second in the world in total wealth rankings.
Tesla's market capitalization surpasses 50 trillion yen, CEO Elon Musk surpasses Bill Gates in total asset ranking to become second in the world --GIGAZINE
by Thomas Hawk
As of December 9, 2020, Tesla's market capitalization has exceeded $ 616 billion (about 64.1 trillion yen), accounting for one-third of the total market capitalization of all automobile manufacturers in the world. That thing. You can see how rapidly Tesla's market capitalization is increasing by watching the following movie.
Market cap of some of the world's largest automakers: 2001-2020 (aka the coming of the electric car) --YouTube
As of 2001, Toyota's top market capitalization was $ 94,228 million (about 11.3 trillion yen), followed by Daimler's $ 56,161 million (about 6.74 trillion yen). After 3rd place are Honda, Ford, Volkswagen and Subaru. At this point Tesla has not yet been established.
Even as of 2003, when Tesla was founded, the top manufacturers are the same as in 2001, although there are some changes between Honda in 2nd place and Daimler in 3rd place.
In 2005, Toyota's market capitalization exceeded 20 billion dollars (about 22 trillion yen).
Tesla first appeared in 2010 when it went public, but at this point it is quite different from the top layers such as Toyota, Honda, Volkswagen, Daimler and Ford.
Around 2017, Tesla began to overtake the market capitalization of Subaru and Ford ...
In 2020, the market capitalization rose at an astonishing speed, surpassing Toyota and taking the lead.
Tesla's share price has grown about 10 times over the past year, not because Tesla's earnings and shipments far outpaced Toyota and other manufacturers. Certainly Tesla will ship 376,500 cars in 2019 and is expected to record more than 500,000 shipments in 2020, but Toyota is expected to ship more than 920,000 in October 2020 alone. I am shipping a car.
This is a pie chart of 'Sales of major automobile manufacturers' by Datamentary. Tesla is the blue part between BMW and Volkswagen, and unit sales are significantly different from many car makers. In addition, Tesla's projected revenue for 2020 is $ 28 billion, which is far less than Volkswagen's $ 299 billion (about 31.1 trillion yen).
In response to the question, 'Why is Tesla's market capitalization, which has a small market share and small profits, so high?', Datamentary said, 'The market sees Toyota, Volkswagen, and Daimler as'automakers'. But Tesla sees it as a 'technology company,' he said. Automakers are an industry where future growth can be predicted to some extent, but technology companies have the potential to grow beyond expectations.
The Datamentary summarizes the factors driving Tesla's market capitalization as follows:
-Advantages in electric vehicles: At the time of writing, the electric vehicle market is still in its infancy, with less than 1% of all vehicles sold worldwide. However, in China, the proportion of electric vehicles
-Self-driving feature advantages: Tesla has received a lot of attention as it said it delivered a beta version of its fully autonomous driving software in October 2020.
-Speed of revenue growth: Tesla's revenue is certainly small compared to other car makers, but considering that revenue was only 100 million dollars (about 10.4 billion yen) 10 years ago, it is only 10 years It can be seen that the profit has increased 28 times. Neither Toyota nor Volkswagen have achieved such a large increase in profits.
・ Energy storage system such as solar power generation: Tesla is not only a face as an automobile manufacturer, but also develops and sells storage batteries that store the energy of solar power generation, and is involved in the development of smart watches . As a technology company, we are expanding into various fields.
・ Establishment of Tesla brand: Although Tesla has a small share of the market, it has established a solid 'Tesla brand', and the presence of CEO Elon Musk, who is attracting attention, is also helping to enhance the Tesla brand. ..
Datamentary cites various reasons for Tesla's high market capitalization, but the last major reason is that Tesla is actually making a profit. Many times in Tesla's history, the question has been, 'Can Tesla's business model actually make a profit?' However, Tesla has been in the black for the fifth straight quarter since the third quarter of 2019, indicating that it will be profitable in its business. In recognition of these points, Tesla's market capitalization is far ahead of other car makers, Datamentary said.
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