Tesla Motors Inc (TSLA) Market Cap Crosses $20 Billion

0
Tesla Motors Inc (TSLA) Market Cap Crosses $20 Billion
Blomst / Pixabay

Shares of Tesla Motors Inc (NASDAQ:TSLA) soared on Monday, climbing almost 6 percent and taking the EV automaker’s market capitalization over $20 billion. Over the weekend Tesla CEO Elon Musk said he would release a video of a system he and his team created which can design rocket parts using gestures and then print them out in titanium.

Tesla Motors Inc (TSLA) Market Cap Crosses $20 Billion

Tesla’s market cap compared to other automakers

Many investors and analysts have been harping on the fact that there is no rational numerical way to provide a reasonable valuation for Tesla Motors Inc (NASDAQ:TSLA). The company expects to build 21,000 vehicles this year, keeping it much smaller than competing automakers. Even so the company’s market cap is now double that of competitor Fiat, according to Tyler Durden of Zero Hedge.

DG Value: Targeting Overlooked Opportunities In The Middle Market

Yarra Square Investing Greenhaven Road CapitalFounded in 2007 by Dov Gertzulin, DG Value is a value-focused investment firm. The firm runs two primary investment strategies, the diversified DG Value Funds and the concentrated DG Concentrated strategy. Q3 2021 hedge fund letters, conferences and more The flagship DG Value Fund was launched in 2007, specializing in middle-market distressed situations and event-driven Read More

Several experts have noted that Tesla Motors Inc (NASDAQ:TSLA)’s valuation is based on expectations of what the company will do in the future. When the automaker’s market cap hit $20 billion, Durden notes that it will have to sell between 500,000 and 3 million cars by 2022 “to grow into its valuation.”

Competing U.S. automaker Ford Motor Company (NYSE:F) has a market cap of $64.9 billion, while General Motors Company (NYSE:GM) has a market cap of $48.8 billion. Both automakers sell far more vehicles every year than Tesla Motors Inc (NASDAQ:TSLA) expects to sell this year.

GM, others worried about Tesla

But the fact remains that there are signs that Tesla Motors Inc (NASDAQ:TSLA) may pose a threat to long-established automakers. Last month it was revealed that General Motors Company (NYSE:GM) had formed a group tasked with examining Tesla because it was worried that Tesla would become a major disruptor in the industry.

Also there are 10 different automakers whose vehicles Tesla Motors Inc (NASDAQ:TSLA) outsold in California in June. They are: Buick, Cadillac, Chrysler, Fiat, Jaguar, Land Rover, Lincoln, Mitsubishi, Porsche and Volvo.

Updated on

No posts to display