Tesla’s Market Cap Gains More in a Single Day Than VW is Worth

Yesterday Sunday Tesla published the production and sales figures for the fourth quarter and the entire year 2021, which are more than encouraging for electric mobility, and today it was reflected in the share price. It rose 13.53% to 1,199.78 dollars (1,061.57 euros), catapulting Tesla’s stock market valuation by 143.61 billion dollars (127.07 billion euros) to 1,204.89 billion dollars (1,066.09 billion euros).Yesterday Sunday Tesla published the production and sales figures for the fourth quarter and the entire year 2021, which are more than encouraging for electric mobility, and today it was reflected in the share price. It rose 13.53% to 1,199.78 dollars (1,061.57 euros), catapulting Tesla’s stock market valuation by 143.61 billion dollars (127.07 billion euros) to 1,204.89 billion dollars (1,066.09 billion euros).

Market Capitalizations of the Top 25 Automakers

This increase in one day was more than Volkswagen’s entire stock market value, and almost as much as Daimler and BMW are worth together at $150 billion. How justified Tesla’s stock market capitalization is is a heated topic among shareholders. But there is no doubt about its importance. It allows the company to raise tens of billions of dollars in cheap capital to make the large investments needed to expand production capacity, the service and Supercharger network, and software development.

Something that is denied to other manufacturers and is not getting any easier. The debt levels of many traditional manufacturers make such investments more difficult, as the following chart with data from February 2020 also shows.

Debt of selected carmakers – Source

This article was also published in German.

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