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Even despite yesterday’s fall in TSLA stock price, Tesla’s market cap is still higher than the combined capitalization of 5 major automakers.
Tesla Inc (TSLA) stock price dropped by 5.09% to $972.84 at the last trading session. Despite this dip, Tesla’s market capitalization is $180.34 billion which makes it the most valuable automaker in the world. This comes as Tesla’s business is improving in terms of sales in China. More sales are expected to occur across the globe as the movement restrictions ease off. Tesla still has a long way to go in terms of market capitalization. It is the 34th most valued company in the United States at the moment.
Moreover, Tesla (TSLA) stock price is on its way up now. At the time of filing this report, in the pre-market, Tesla (TSLA) stock is at $ 982.94 (+1.04%).
Tesla (TSLA) Beats Market Capitalization of Top Five Automakers Together
Telsa’s market capitalization is higher than of General Motors Company (NYSE: GM), Motor Co Ltd (TYO: 7267), Ford Motor Company (NYSE: F), Fiat Chrysler Automobiles NV (BIT: FCA), and Daimler AG (ETR: DAI). And these represent the top five automakers by the sheer volume of cars manufactured.
General Motors has a market capitalization of $37. 92 billion, Honda – $48.22 billion, Ford – $24.38 billion, Fiat Chrysler – $13.82 billion, and Daimler – $37.95 billion.
This brings everything to a total of $162.29 billion. This is an $18.05 billion difference which has led many to believe that Tesla (TSLA) stock prices are overvalued.
Others also believe that the prices are driven by the often outrageous personality of its founder and CEO Elon Musk. While Elon Musk acts as if he belongs in another universe, he has got several things going for him.
He is technically sound in all his endeavors. This reduces the rate of his margin of error when it comes to innovation. It also is a firm foundation for directing research and development efforts. Musk has been to several corporate rodeos. He was successful at some while he wasn’t at others. These experiences are being brought to bear at Tesla (TSLA) and others. This is why he is successful at what he does.
Tesla (TSLA) stock isn’t overvalued, actually. The main reason why Tesla (TSLA) stock prices are rising this fast is that the homegrown technology of the firm is sound. Like so many of Musks’ other ventures, he started from scratch. The wonderful system of the American economy has given him everything that he needs to grow his businesses from scratch.
Innovation Is the Key
Speaking about innovation, Tesla (TSLA) is won’t of the leaders in self-driving technology. It is actively researching into fully autonomous self-driving cars. While it may have looked far-fetched a decade ago, these features may be available within the new decade.
Considering the other automakers, other carmakers have sold millions of cars in the past year (65.5 million cars last year). Tesla (TSLA) has sold about 367,500 cars last year.
The key factor here is research and development. Tesla (TSLA) offers so much more than just electric vehicles. Its technology can be used to solve other problems.
This alone could push its stock prices even higher. Something that other carmakers may have to bear with.
Read other transport industry news on Coinspeaker.
Christopher Haruna Hamman is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.
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