Tesla’s market capitalization knows no bounds. Earlier today, the company’s market value broke through the 700 billion dollar barrier and currently stands at 731 billion dollars (595 billion euros).
After the positive news with 2020 annual deliveries almost reaching the targeted goal of half a million vehicles and the news that the Gigafactory in Shanghai successfully increased a weekly production to 8,000 units, investors are now confident that Tesla will be able to massively increase production again this year.
Chinese electric car manufacturers NIO and BYD are also seeing their stock market valuations rise. The two companies now rank fourth and fifth among the most valuable automotive companies after Tesla, Toyota and Volkswagen, ahead of Daimler, General Motors and BMW.
At the same time, traditional competitors are showing signs of nervousness. VW CEO Herbert Diess, for example, lamented the competitive disadvantage in capital raising. Thanks to Tesla’s market valuation, the company can raise capital very cheaply, which Tesla did, selling less than 1 percent of shares in December to raise $5 billion. Volkswagen, BMW or Daimler, on the other hand, have to make cuts, including plant closures and layoffs, to fund ambitious programs for electric car and battery development, as well as autonomous driving. And this is precisely what is already leading to conflicts with the workforce and the works council at Daimler and Volkswagen, which in turn distract from the real challenges and lead to internal friction.
Is this how it’s going forward with Tesla?
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This article was also published in German.