[TusharK]

Tesla could soon surpass Toyota to become the world's most valuable carmaker. The EV maker's market cap rose to US$ 190 billion, whereas Toyota's market value is around US$ 216 billion.



Earlier this week, Tesla Inc's stock price rose by 8.97% to US$ 1,025.05 after Elon Musk, co-founder and CEO, shared his plan to start production of the all-electric Semi Truck. The truck's batteries and powertrain will be made at the company's Nevada battery factory.

The Tesla Semi was unveiled in November 2017. It comes in two configurations with a maximum range of either 480 km or 800 km with a full load.

The truck is powered by 4 independent motors that are located between the rear axles of the truck. Tesla claims a 5 second 0-60 mph time without any load and 20 seconds when fully loaded at over 36,000 kg. The truck is also claimed to maintain a speed of 105 km/h on a 5% grade under full load.

Elon Musk's statement comes just days after Nikola Corp. announced plans to open bookings for the Badger electric truck.

Source

Link to Team-BHP News

[SKC-auto]

I see that it already crossed Toyota, there is this image circulating all over twitter. Share price is very high even though they manufacture a fraction of what Toyota manufactures.

[sri_tesla]

Exactly 10 years ago Toyota invested $50 million in Tesla and announced the intention of jointly working on developing EVs. This is what Toyota president and Tesla CEO had to say about each other at the time of the agreement.

Toyota president about Tesla:
"I’ve felt an infinite possibility about Tesla’s technology and its dedication to monozukuri (Toyota’s approach to manufacturing)," said TMC President Akio Toyoda. "Through this partnership, by working together with a venture business such as Tesla, Toyota would like to learn from the challenging spirit, quick decision-making, and flexibility that Tesla has. Decades ago, Toyota was also born as a venture business. By partnering with Tesla, my hope is that all Toyota employees will recall that ‘venture business spirit,’ and take on the challenges of the future."

Elon Musk about Toyota:
"Toyota is a company founded on innovation, quality, and commitment to sustainable mobility. It is an honor and a powerful endorsement of our technology that Toyota would choose to invest in and partner with Tesla,” said Tesla CEO and co-founder Elon Musk. “We look forward to learning and benefiting from Toyota’s legendary engineering, manufacturing, and production expertise."

Toyota and Tesla worked together to release a full-EV version of its popular SUV Rav4. Battery and powertrain were supplied by Tesla. It has 50 kWh battery with 41.8 kWh usable capacity and has a range of 103 miles. Toyota limited sales to only California and production was limited to just 2600 units in 3 years.

After a decade, Toyota still needs to learn the challenging spirit, venture business spirit Tesla has. Tesla needs to learn the production quality from Toyota.

Source:
https://www.tesla.com/no_NO/blog/tes...tm?redirect=no

[ValarMorghulis]

Tesla becomes most valuable automaker, worth more than GM, Ford, FCA combined. Tesla is now worth more than any automaker in the world as its stock price soars past $1,000 per share.

Move over, Toyota, because Tesla is now the most valuable automaker in the world.
That's correct, a startup electric carmaker that's only just this year started to turn a regular profit is worth more than Toyota, Volkswagen Group, Honda and Daimler, with a market cap valued at about $185 billion. In fact, Tesla is now worth more than General Motors, Ford and Fiat Chrysler Automobiles combined.
Article here

[Nikhildrao]

The stock market isn't a yardstick to measure success anymore as it's become unreliable case in point during corona we saw that the stocks were still high and did reflect the actual situation in the real world market. As someone quoted "stock market is a graph of rich people feelings"

Tesla as a brand is pretty strong and how as a company are the champion of planet green. Also they have luck of being headed by a youth icon (Elon Musk)

Subsidiaries like Tesla solar panels and battery grids for storing renewable energy is also a must in the future

Considering all this. They deserve it.

[SmartCat]

We need somebody with startup valuation experience to explain why Tesla is worth $200 billion. You know - those who can justify $10 billion valuation for a startup that generates $200 million revenues but loses $1 billion a year.

Perhaps there are parallels between Amazon Inc in year 2000 or 2015 and Tesla in 2020? The former was a disruptor of brick and mortal retail while the latter is supposed to be a disruptor of automobile industry. Amazon too shot up to insane valuations in year 2000/2015 compared to its financials:





It shot up from $1 to $100 by year 2000. And then from $100 to $600 by year 2015. But Amazon did not make much money then. But now in 2020, Amazon is trading at $2,500 or trillion dollar plus valuation.



Personally, I think Amazon/Tesla's valuation is idiotic - but then, I don't know how to value disruptors like Amazon or Tesla.

[ramkumartv]

Originally Posted by SmartCat

We need somebody with startup valuation experience to explain why Tesla is worth $200 billion. You know - those who can justify $10 billion valuation for a startup that generates $200 million revenues but loses $1 billion a year.

Perhaps there are parallels between Amazon Inc in year 2000 or 2015 and Tesla in 2020? The former was a disruptor of brick and mortal retail while the latter is supposed to be a disruptor of automobile industry. Amazon too shot up to insane valuations in year 2000/2015 compared to its financials:

Attachment 2015983

Attachment 2015985

It shot up from $1 to $100 by year 2000. And then from $100 to $600 by year 2015. But Amazon did not make much money then. But now in 2020, Amazon is trading at $2,500 or trillion dollar plus valuation.

Attachment 2015984

Personally, I think Amazon/Tesla's valuation is idiotic - but then, I don't know how to value disruptors like Amazon or Tesla.

While I agree with you 100% on the ridiculous valuation of Tesla and Amazon, IMO companies which we think will disrupt an industry should be 5 to 10% of our stock portfolio. Holding Amazon from around $900 and Tesla from $200 has given me better returns compared to many other stable companies which has solid balance sheet.

[Thermodynamics]

In the greater game of central banks, virtual money, bonds, ever increasing debt and in gambling of stock market by financial instruments, I guess they have found a new favourite.

Quite honestly, there is no comparison between Tesla and Toyota. To me what matters is the following.(source 1), (source 2)

Total Revenue 2019
Toyota: 253 b$
Tesla: 21 b$

Total Volume 2019
Toyota: 9 million
Tesla: .37 million
(Well VW sells more cars than Toyota)

Net Income 2019
Toyota: +3.4 b$
Tesla: -0.83 b$

PS: this is not to ridicule Tesla, I admire them, but this valuation IMO is insane

[turbo]

Moderation team, please move this post to the appropriate thread. Couldn't find one, and was unsure if this warranted a new thread.

https://theintercept.com/2020/05/14/...-musk-a-fraud/

[bmw_lover]

Originally Posted by SmartCat

We need somebody with startup valuation experience to explain why Tesla is worth $200 billion. You know - those who can justify $10 billion valuation for a startup that generates $200 million revenues but loses $1 billion a year.

Personally, I think Amazon/Tesla's valuation is idiotic - but then, I don't know how to value disruptors like Amazon or Tesla.

I think Tesla is being valued as a yet another technology company just like those FAANG companies (Facebook, Apple, Amazon, Google and Netflix). Automobile manufacturing is just one of the applications of the battery technology that they have pioneered in. All these companies are not valued for their revenue or what they offer but what they can offer in future. Rich invest early. They have one eye on the future. Mortals like us try to ride the wave.

Tesla is being bet upon for its pioneered battery tech, committed and successful R&D, madness for innovation and also on the man on the helm of it all i.e. Elon Musk himself. I mean how related is automobile manufacturing and space program are? Its just like that steam engine by Thomas Savery moment where the engine can be applied to any thing limited only by the man's imagination.

Also cases like Amazon provide a live example of what a driven company can become in future. I think Bezos is also a contender in the space wars who basically started as a book seller.

Just imagine the possibilities. If i dare think. How about mobiles lasting for a week on a single charge. Electric generators for manufacturing plants instead of diesel gen-sets. Electric trains. Obviously i can't think as big as Elon bhaisaab.

[Pontiac]

Comparing Tesla to other carmakers almost felt like Apple comparing the sales of its Apple Watch to that of Rolex. Apple did it to make people feel that the $300 watch is comparable to a $9000 Rolex. A sales pitch. And it worked.

Tesla should be compared to any other software companies like that of what was mentioned in the thread already. After all, software is one of the 4 components in the car (Wheels, Motors, Software & Battery)

But if you end up comparing it to other automakers, Tesla has one strong advantage to its side. The battery cost which is the main cost of a Tesla reduce by about 50% per 3 years. Tesla only has to maintain the current sales at the current price just to see its profit surge by 50% in 3 years approximately. It’s the business idea that's ultimate. Not the car.

[V.Narayan]

Originally Posted by SmartCat

We need somebody with startup valuation experience to explain why Tesla is worth $200 billion. You know - those who can justify $10 billion valuation for a startup that generates $200 million revenues but loses $1 billion a year.
Personally, I think Amazon/Tesla's valuation is idiotic - but then, I don't know how to value disruptors like Amazon or Tesla.

+1.

Way too much idle money from Saudia, Japan, USA and corrupt rulers from all over the world chasing too few assets. It is a sign of our times that folks who own billions, which in turn earn billions more remain focused on multiplication instead of like Bill Gates saying let this money be used for the good of mankind.

[avira_tk]

Originally Posted by V.Narayan

+1.

Way too much idle money from Saudia, Japan, USA and corrupt rulers from all over the world chasing too few assets. It is a sign of our times that folks who own billions, which in turn earn billions more remain focused on multiplication instead of like Bill Gates saying let this money be used for the good of mankind.

Bill is not exactly a philanthropy enthusiast, recent events have put light on his focus which is way more sinister than run of the mill corruption. Tesla is valued so high because it is riding a wave of virtue signalling, it has the establishment on its side. Criticism of green energy can get you unpersoned, like Michael Moore discovered with his latest documentary.

Philanthropy through family foundations serves a purpose, uplifting people is incidental not intended.

[V.Narayan]

Originally Posted by avira_tk

Bill is not exactly a philanthropy enthusiast, recent events have put light on his focus which is way more sinister than run of the mill corruption.

Your views not mine. I don't subscribe to internet gossip and slander. Having dealt with his foundation at very close quarters I have a different perspective.

Philanthropy through family foundations serves a purpose, uplifting people is incidental not intended.

I disagree completely. My working life now is in the not for profit sector. It requires, among other things raising literally crores of rupees for a worthy purpose. Some donate from the heart, some donate to get PR mileage, some donate to meet the law. To the hungry the food is equally valuable regardless of the intention of the donor.

[avira_tk]

Originally Posted by V.Narayan

Your views not mine. I don't subscribe to internet gossip and slander. Having dealt with his foundation at very close quarters I have a different perspective.
I disagree completely. My working life now is in the not for profit sector. It requires, among other things raising literally crores of rupees for a worthy purpose. Some donate from the heart, some donate to get PR mileage, some donate to meet the law. To the hungry the food is equally valuable regardless of the intention of the donor.

I'm taking about foundations and how they operate is open knowledge, doesn't mean it's widely discussed, it's not internet gossip or slander. Raising money for a cause and family foundations are completely different. I'm not keen on taking health advice from a college dropout, whatever his business acumen may be. You're free to see the exception as the rule.