Wonder
Tesla is Now Worth More Than The World’s Top Seven Carmakers
$28b more than seven other brands combined.
Tesla has soared very high right now – to be exact. It’s reached $615billion in stock value, entering the S&P 500. This number is higher than the value of seven other giant companies combined.
To think there was a time when founder Elon Musk asked Tim Cook from Apple if he is interested to buy his company. Tesla’s journey to reach where it is right now is one filled with setbacks and unprecedented issues.
Just this Sunday, the company was listed under the S&P 500 list at $665 per share. The share closed on Friday at $695, one of the highest ever for an entrant on the list. Despite this, experts are warning against the ‘dramatically overvalued’ numbers of the shares. They fear that this may suddenly plummet fast with new concerns over the pandemic to worry the public in the UK.
Tesla’s market value easily tops Ford, Honda, BMW, GM, Daimler, Volkswagen, and Toyota combined. But experts cannot predict what will happen if Apple decided to enter the electric car market.
Vitali Kalesnik from Research Affiliates says, “Tesla’s current valuation is in the bubble territory.”
Experts with similar opinions also sounded their concerns. JP Morgan analyst, Ryan Brinkman, wrote in his research note, “Tesla shares are in our view and by virtually every conventional metric not only overvalued but dramatically so.”
This statement is based on how Tesla’s share had gone up 6.5 times its original value. Just in the past two years, it’s gone up 800%, mostly due to Tesla continuing their production in California after May. Just hours after the company entered the S&P 500 on Monday, the number fell by 6%.
Elon Musk reveals that he once asked Tim cook to buy Tesla at a much lower price.
Elon Musk wrote that he was willing to offer “1/10” of the value then to Apple, but Tim Cook ‘refused to take the meeting.’
Currently, Project Titan from Apple is their attempt at entering the electric car market. While its progress has been rather unstable with Apple shifting their focus back to smart gadgets, they currently plan to launch their car in 2024.
Apple brags their battery capacity which allows the car to travel further with lesser and reduce production cost.
One of Tesla’s model, Tesla Model 3.
