Elon Musk designates Tesla’s real rival, and you will be amazed!





Traditional automakers, such as GM (GM) – Get General Motors Company Report, Ford (F) – Get Ford Motor Company Report, Volkswagen (VWAGY) – Get Volkswagen AG Report, and Mercedes-Benz (DDAIF), are positioning themselves against at Tesla.

Startups like Rivian (RIVN) – Get Rivian Automotive, Inc. Class A Stock Report, Lucid Group (LCID) – Get Lucid Group, Inc. Report and Fisker (FSR) – Get Fisker Inc Class A Report wants to be compared to Elon Musk’s EV juggernaut.

But Tesla’s fame extends far beyond automotive circles. Companies that want to be innovative and disruptive also have their eye on what Tesla is doing.

Thanks to the latest technological innovations, the electric vehicle manufacturer has transformed the car into a living room on four wheels. (Similarly, Apple AAPL can boast of having a technology ecosystem, in phones and computer hardware).

Among consumers, the T brand occupies a special place. Owning a Tesla car means being part of a very exclusive club. Diehards swear by the brand, which currently markets four models – the Model S and Model 3 sedans and the Model X and Model Y SUVs.

The futuristic Cybertruck, Tesla Semi and new Roadster are expected to go into production in 2023.

Save the planet

It is difficult to classify Tesla, especially since Musk, the architect of this extraordinary success story, likes to cover his tracks. See the article: When Angeline Jolie Kissed Her Own Brother James Haven on the Oscars Red Carpet, It Sparked Incest Rumors.

To those who think of Tesla as just an automaker, it’s often reminded that the company’s market capitalization, which topped $1 trillion a few months ago, tells a different story.

Tesla Sells Far Fewer Cars Per Year Than Toyota (TM) – Get Toyota Motor Corp. Report, GM, Volkswagen or Ford. In 2021, the Austin company sold barely 1 million vehicles, compared to millions from historic manufacturers.

And for those who categorize Tesla as a tech company, they’re often reminded that Tesla is kind of a way of life in its own right. It is, they are told, a choice to protect the planet and save it from pollution.

Seen from these angles, Tesla’s real rival is difficult to pin down, especially since Musk stares at his rivals but hardly ever talks about them.

Apple is often the company the billionaire brings up in his tech endeavors. But he laughs at his products and wonders what the iPhone maker has come up with that’s revolutionary.

As Tesla shareholders and analysts wonder if Musk will devote much of his energy to developing Tesla as he acquires microblogging site Twitter for $44 billion, Musk just sent them a message that should to reassure.

Besides hoping he won’t have to use his Tesla shares as collateral to fund the takeover, the serial entrepreneur just named the company he sees as likely the final hurdle to Tesla’s original mission.

Saudi Aramco, not Apple

That company is the Saudi oil giant Saudi Aramco. On the same subject : Has Kim Kardashian hinted at marrying Pete Davidson?.

The billionaire says he thinks “Tesla has the potential to become the most valuable company of all time.”

“When the market capitalization of Tesla, which makes sustainable energy products, exceeds that of Aramco, which produces fossil fuels, you know the future will be good for the Earth,” Musk wrote on Twitter on May 25. He was commenting on a message saying he had warned investors of a possible recession that would affect the stock price.

Saudi Aramco is currently the most valuable company in the world, with a market capitalization of $2.387 billion as of May 26. The oil giant is taking advantage of soaring crude oil prices sparked by Russia’s invasion of Ukraine.

Apple comes second with a market capitalization of $2.327 trillion, followed by Microsoft (MSFT) – Get Microsoft Corporation Report with $1.998 trillion.

This is followed by Alphabet (GOOGL) – Get Alphabet Inc. Class A Report, which has a market value of $1.426 billion, and Amazon (AMZN) – Get Amazon.com, Inc. Report, valued at $1.13 trillion. .

Tesla is currently sixth with a market cap of $733.21 billion. On December 31, Tesla still had a market cap of $1.099 billion. Since then, that valuation has fallen by $366 billion. Tesla stock is down a third since January.

Supply Chain Disruption and Fundamentals

The pullback is certainly driven by worries about supply chain disruptions and rising commodity prices, but it’s also largely tied to concerns that Musk will be distracted by Twitter. See the article: Poor Justin Bieber: Ferrari bans the singer from his clients, he will never be able to buy a Ferrari again!.

Besides Tesla, Mr. Musk runs rocket company SpaceX and is involved in medical device production Neuralink and infrastructure provider Boring Co.

Investors wonder how he will divide his time between all these companies once he completes the acquisition of Twitter.

Those fears aside, Tesla’s fundamentals are solid: its vehicle order books are full; recent vehicle price increases have been accepted by customers; and Tesla promises full vehicle autonomy by the end of the year.

The group now has four factories – Fremont (California), Austin, Shanghai and Berlin – which will allow it to significantly increase its production.

In the first quarter, Musk’s business achieved strong margins and posted the best profitability in the automotive sector, despite lower sales volumes than its main competitors.

“The whole point of this was, and remains, to accelerate the advent of sustainable energy, so that we can imagine far into the future and life is still beautiful. That’s what ‘sustainable’ means,” Musk wrote in July 2016 in his Master Plan for Tesla, Part Two.

“It’s not some silly, hippie thing – it’s important to everyone.

Azoma





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