Tesla’s $1000 share price proves the Stock Market is absurd again
A year ago, Tesla was running out of money. Now, it stands at 182 billion dollars market cap, more than Volkswagen, Hyundai, and General Motors combined. This looks like another tech bubble.
For the last 2 years, Tesla has been in the spotlight across the world, and why wouldn’t be? A charismatic CEO, best in class EVs by range, an amazing autonomous driving experience available, a strong fan base. All are ingredients to dominate the automobile industry of the future.
But is enough to make the company worth more than the top 3 automakers, except Toyota? It might be if it had a market share of 50% and sold more vehicles than its biggest competitor. In 2019 Tesla sold 367,000 vehicles, according to the official statement. Toyota sold 30 times more, 10,74 million according to the Japan Times. Not exactly in the same league.
So why is the company worth so much? Everyone thinks that the company has a big advantage in EV manufacturing, the industry of the future, and in the autonomous driving tech. This means it has the potential to dominate the auto industry. We’ve seen this in the past.
