Toyota, Audi, Nissan and many more, these are car companies that have been existing for a very long time and they have been for a very long time. Recently in July 2020, a company emerged as the most valuable car company in the world and that company is Tesla. I begin to ask myself, but there are more Benz, Rolls Royce, Volkswagen, and Toyota in circulation, how did Tesla become the most valuable company and is Tesla truly the most valuable company?
Tesla, a company that produces electric vehicles was founded by two engineers Martin and Marc who later pitched the business to Elon Musk who invested $6.5 million into the company and soon became the Chairman board of directors. After Elon took over the company, he came with a plan to create luxury electric vehicles for the extra rich and this as a success but the company did not become a talk of the town until it created its truck and also affordable electric vehicle for the general public. The interesting thing about the car is its battery life with faster charging time and not big batteries by size.
Do not forget that due to a lot of internal issues in the company among the board of directors as well as heated lawsuits in the beginning, the company was going close to bankruptcy until there was a Christmas breakthrough from NASA for SpaceX which made Elon had enough money to invest in the company. Although, there were other good deals like the Daimler investment, the government soft loan and many more. Tesla sold at the stock market for $17 per shares at IPO. Since the value of a public company is determined by the price of a single stocks to total supply given market capitalization, the company grew in valuation faster than expected.
The company did not only enjoy price in stocks but also, the company made a lot of sales as it was selling an average of 200 thousand unit yearly (this is for a luxury electric vehicle). This year, amid the pandemic, the company stocks reached a record high of $208 billion valuation compared to its IPO of $226 million and this made the company the most valuable company followed by Toyota. The company’s stocks have been on a high, although always sees a little drop due to news and delay in rolling out new versions, it has maintained between $1000 to $1500 per shares.
Is Tesla’s Company Overvalued?
This is one thing I ask myself. I have seen a lot of people buy into Tesla because of one person Elon Musk. The believe is that Elon is the Tech Jesus and Tesla is a Tech company. Well, I will say it is in a way and it isn’t in another way since they manufacture and sell cars but I will leave it to you to tell me your opinion about the company Tesla and if it is overvalued.
Actually to me, from day 1 I have seen them as overvalued. There is nothing special I sense from them or perhaps I know little about them and they content they offer but I don't think they are worth that much as how people hype them
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Thanks for your opinion friend.
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Tesla has changed the way we view vehicles. Why else would every car company in the world make the attempt to create an electric vehicle better than a Tesla. My wife told me about this stock when it was $25 a share. If only...
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Really great, thanks a lot for your opinion.
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@eni-ola ev is the future technology and we will see more boom in this technology. Tesla is one of the best car in the ev segment and company is undervalued the price will be boom in future.
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I really think so too thanks a lot for your opinion.
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In my opinion, I don't think the company is over valued, a company that thinks as fast and as smart as Tesla definitely deserves to be the leading team in the automobile industry.
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If we only consider their stock price I would say that right now every stock in the world is being boosted by printed money every second...
But if we go to the fundamentals and feeling about the company it is one of the best. Is it just me that plans my next car to be a Tesla?!? I don't know if that says anything about the price :D
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I found your title amusing because Tesla seems so flaky in the news.
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Tesla has a lot Good reputation and that is a important factor to take into account.
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Tesla Motors is a big brand. The pioneer brand in EV industry. However, the sale and goodwill of the Tesla Motors is hinged on Elon Musk. Like you said in the article; Elon is practically synonymous with Tesla. About the value of the company, I think Tesla is a market leader — the value is deserved. And people need to understand that the valuation is based on the stoke/share. And in comparison with other brands like Mercedes, Toyota, Audi, Ford etc; Tesla is still young
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