Despite the reluctance, skepticism, production problems, quarterly losses and detractors, there is some unanimity that Tesla represents, to a greater or lesser extent, the future of Motorsports and private transportation. He has managed to lead the futuristic ideal and has become a talent magnet at the height of Apple or Alphabet.
The entire industry watches their movements, as well as the ravings of its CEO, Elon Musk, who still presents incredible electric cars that he announces by means of a tweet in his personal account that he intends for the company to stop trading on the stock market.
An act that caused the value of its action to skyrocket for a couple of days in a row and opened a debate about what a CEO can and cannot do suddenly and in relation to investors and regulators. Beyond that, the truth is that Tesla’s situation in the market is unique, at least in the automotive industry. Let’s see some numbers.
Few Tesla, many dollars, a lot of confidence
This is the market capitalization of several groups and car companies, after the market close of August 8, 2018.
- Daimler: 73,081 million dollars.
- Ford: 40,057 million dollars.
- Volkswagen: 84,698 million dollars.
- Honda: 55,665 million dollars.
- Tesla: 63,177 million dollars.
- General Motors: 53,134 million dollars.
And these are the figures for cars sold during the last calendar year, 2017, for each of those groups.
- Daimler: 2,665 million cars.
- Ford: 6.254 million cars.
- Volkswagen: 10,413 million cars.
- Honda: 5,359 million cars.
- Tesla: 103,000 cars.
- General Motors: 6.875 million cars.
It is true that Tesla has other activities besides the sale of cars -energy and software-, but that is still the main one, and the rest of the groups also have other legs in their business, equally minor, such as carsharing or financial services associated with those sales.
Marc Fortuño, the collaborator of El Blog Salmón and market expert, believes that Tesla ” is a company that does not generate operating cash flow, that is, its activity does not generate cash, feeds on promises and survives, thanks to the extensions of capital, it’s a bluff. ” He sees it as “the antithesis of Amazon”, and considers that its real value is that of its assets. “There are profitable companies, unprofitable companies, and long-term unprofitable companies; Tesla is one of the last: it survives through continuous capital increases because it burns money.” Tesla sources have not wanted to make any statement in this regard.
José Antonio Madrigal is CEO of Mercalia Global Market and professional stock exchange operator. Regarding Tesla’s situation on the stock market, he believes that “The stock market ultimately does not value reality, assesses the future possibility of a company.” In the case of Tesla, the results for the first half of 2018 have been the worst in the history of the company. However, its shares have risen nearly 100 dollars in the last seven days, more than 30% revaluation. ”
These expectations are what have made Tesla’s stock go from being worth 20 dollars to be worth 400 in eight years. “A revaluation that will still achieve the best goals in the coming years, both in production and sales that Musk wants, will be impossible; I’ll multiply again by 20 in the next eight years. ”