In the midst of a pandemic, Tesla found a way to achieve a meteoric rise in the markets

Washington- Tesla, the maker of luxury electric vehicles, has gone from being a company that cast doubt on Wall Street analysts in 2020 and aspired to be acquired by Apple to become a monster valued at nearly $ 660 billion, after of earning $ 550 billion in the last 12 months.

In 11 months in 2020, Tesla’s market capitalization multiplied by five despite the crisis caused by the pandemic for much of the year, and that the electric vehicle manufacturer remains a marginal company in the sector in terms of volume. production and sales.

The company, based in the Californian town of Fremont, where its only assembly plant is also located in the United States, expects to have delivered about 500,000 vehicles by the end of 2020. While the figure is the highest in the company’s history, it’s only a fraction of what the industry’s leading manufacturers produce.

Last year, German group Volkswagen produced about 10.8 million vehicles, while Japanese group Toyota sold 10.7 million units.

The most valuable manufacturer

But despite the differences between the two global car giants and Tesla, the market capitalization value of the controversial company Elon Musk stands at $ 659.4 billion today, while VW’s is $ 233.3 billion and Toyota’s $ 352.6 billion .

Thus, at $ 660 billion, Tesla is currently the most valuable car manufacturer in the world, far behind its main competitors in the industry.

To put this figure into perspective, Apple, the second most valuable company in the world, just behind Saudi Aramco, is valued at $ 2.17 trillion, while Microsoft and Amazon are tied at $ 1.6 trillion.

Tesla’s growth this year has been meteoric. On January 22, 2020, the stock market valuation of Tesla, a company founded in 2003 by Musk along with four other entrepreneurs, first exceeded $ 100,000 million when the price of its shares stood at $ 592.96. .

meteoric rise

So far, in just under 10 years, the value of Tesla’s stock had multiplied by almost 35 (starting its stock market path in July 2010 at $ 17 per share), although the car company until this year it was not able to generate profits sustainably.

In other words, it took Tesla almost 10 years to go from $ 1.7 billion in market capitalization to $ 100,000 million, but in just 11 months it increased from $ 100,000 to $ 660 billion.

Although many analysts remain perplexed by the meteoric rise of Tesla in 2020, when studying the list of the most valuable companies in the world can be understood one of the main reasons why the electric vehicle manufacturer is where it is and the why from the distance with its competitors.

Not counting Saudi Aramco, both Apple and Microsoft and Amazon are companies in the technology sector. And Musk isn’t selling cars with Tesla, “he’s selling technology,” as CNBC financial analyst and television personality Jim Cramer noted.

A technology company

What the market has come to understand is that Tesla’s strength is not electric vehicle technology, but automatic driving.

“That’s why this young generation is willing to give them money. They’re saying, ‘It’s Steve Jobs (the founder of Apple). Who knows who’s going to come out. I want a part of that.'”, Cramer added.

And what Musk has also shown in recent years to his hardliners is not only that he has the visionary ability of geniuses like Jobs, but he is willing to do anything, or almost everything, to execute his plans.

Two years ago, when the production deficiencies of the Model 3, Tesla’s “mass” vehicle, virtually ended the car company, Musk decided to sleep in the Fremont plant in order to solve the problems that were arising.

This year, when the California government decided to confine the state to combat the spread of COVID-19[feminine, El que va suposar el tancament de la planta de Fremont, Musk va desafiar a l’autoritats polítiques i mèdiques per continuar la producció de l’Model 3.

Musk no només va mantenir oberta la planta de muntatge, sinó que va qualificar de “feixista” i de “empresonament forçat” l’ordre de confinament i va minimitzar la importància de l’coronavirus, a el dir que no era pitjor que una grip.

Tot això, encara que molt polèmic, ha permès que 2020 vagi ser el millor any de la història de Tesla. En els tres primers trimestres del l’any, la companyia acumula 435 milions de dòlars de beneficis nets.

Després d’anys de dificultats, Musk està tan confiat en el futur de la seva companyia que aquest mes es va permetre fins i tot admetre que, en el passat, fins a ell mateix va pensar que Tesla no sobreviuria.

“En els dies més negres de el programa de l’Model 3 vaig contactar a Tim Cook (conseller delegat d’Apple) per discutir la possibilitat que Apple comprés Tesla (per una desena part del nostre valor actual). Es va negar a acceptar una reunió “, va confessar Musk a Twitter.