One billion is a very big number. If you had one billion dollars, you could live a life full of luxury and freedom from day one. Multiply that by one hundred, and, well, I can’t imagine that. That is simply too much. As of January 21, Tesla was worth $100 billion for the first time in the technology company’s history according to Bloomberg’s Tom Randall on Twitter.
To compare, Toyota, the most valuable car company in the world, has a value of $201 billion. GM currently sits at $49.99 billion and Ford follows behind at a value of $36.52. Tesla is certainly looking good right now.
— Tom Randall (@tsrandall) January 21, 2020
Now, it’s only natural that people question this valuation. Matt Solar on Twitter said the following:
Not to be a fun sponge, but I just don’t get this valuation. Tesla = $100b with 1% US market share (roughly $50B per 1% of market share) w/ $5b cash. Ford = $36b with 14% US market share (roughly $2.5B per 1% of market share) w/ $37b cash. …and Ford has a global market.
Jim McPherson answered with a balanced argument:
Which company has a higher expectation of growth? Which company sells the fuel for their vehicles? Which company has real plans for autonomy? Which company is selling software upgrades?
— Jim McPherson 👻 (@mcjamez) January 22, 2020
With the Model Y also not far away from production, the company is certainly building a monopoly over the industry with a full portfolio of all-electric vehicles. Plus, with the innovative production process that Tesla is using in Shanghai-based Gigafactory 3 for the Model Y, if it’s proven to be more cost-effective, the company could grow even further by selling this new method.
Tesla CEO Elon Musk is adamant that the Model Y will be well received by the market.
“Ultimately, the Tesla Model Y will have more demand than probably all the other cars of Tesla combined,” Elon says.
While the company is in the middle of issues regarding unintended acceleration, this news comes as a nice break, despite these issues being proven as incorrect.
Model Y deliveries is expected to start next month – we’re very excited!