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Tesla soars past $1tn in market value

Tesla became the first car maker valued at $ 1 trillion after saying it was owned by rental group Hearts I ordered 100,000 The Tesla Model 3 sedan electrifies its fleet.

Tesla’s stock closed at $ 1,024, up 12.6% on Monday, with year-to-date profits of over 40% and the company’s market capitalization of over $ 1 trillion.

The move happened hours after Hearts announced a deal with Tesla to electrify a rental car fleet. Orders for 100,000 units are a significant amount for automakers, with a total of 241,300 vehicles. Third quarter, Company record.

The company’s CEO, Elon Musk, is currently valued at $ 172 billion, more valuable than any other automaker except Toyota.

Tesla Overtaken Toyota In July 2020, it will become the world’s most valuable automobile manufacturer in terms of market value. Since then, its value has increased five-fold and now exceeds the combined value of the following nine most valuable public car makers: This is the sixth American company to achieve a $ 1 trillion valuation after Apple, Microsoft, Alphabet, Amazon and Facebook (the seventh company to exceed the $ 1 trillion valuation is Saudi Aramco of the Middle East Group). ..

Tesla has been making net profit for the ninth straight quarter after being ridiculed for years after failing to make a profit for the second straight quarter.

this is Latest filing Net income increased 380% from a year ago to $ 1.62 billion, a record high. Car production increased by 72% during a period when other companies were dysfunctional due to a global chip shortage.

Tesla produced only 500,000 cars last year, but Musk said the company’s car production will increase by 50 percent annually for the foreseeable future as China’s production expands. That German factory Going online, the Texas facility will begin production of Cybertrucks, Model Y SUVs, and eventually semi-trucks.

Musk says it expects to produce 20 million cars a year by 2030. This is about twice what leaders such as Volkswagen and Toyota are currently producing.

Tesla also sells “fully autonomous” software upgrades for $ 10,000 upfront or $ 199 per month.

These rates are a new profit model for automakers, usually selling mass-produced vehicles with a single-digit margin and premium vehicles with a double-digit margin. However, controversial driving assistance programs can be against regulatory authorities.

“Tesla is not an automaker because 75% of its future profits come from software and subscriptions,” said Pierre Ferrag, managing partner of New Street Research. $ 1.4 trillion.

Roth Gerber, Tesla’s longtime bull and chief executive officer of Gerber Kawasaki Wealth and Investment Management, which holds more than 100,000 Tesla shares, said: “But it’s difficult to quantify software and autonomous driving.”

But there are many Tesla skeptics. Mirabaud researcher Neil Campling said Hertz’s order was worth $ 4.2 billion for Tesla, while adding $ 80 billion to the market value of the stock. “It’s insane,” he said.

“Wall Street is drinking Tesla Kool-Aid and they aren’t asking difficult questions about tip shortages,” he added. “Even Apple, the world’s largest company, has chip problems, but for some reason Tesla isn’t.”

Bernstein analysts said Tesla’s assessment meant a huge amount that would be “historically unprecedented” and industry-leading profitability. Bernstein’s 12-month price target is $ 300, which means Tesla will lose 70% of its value next year.

Bernstein said it’s unclear whether Tesla, which currently sells only four models, “has a broad lineup to achieve 50% growth” over the next two years. However, the Model 3 sedan and Model Y SUV have admitted that they are one of the best-selling luxury cars in the world, with annual driving speeds of 500,000 and 400,000, respectively.

Additional Report by Joe Renison of New York

Tesla soars past $1tn in market value Source link Tesla soars past $1tn in market value

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