- Daily Zen
Tesla’s market value is now almost five times that of Volkswagen.
Tesla market value is close to achieving the $500 billion mark soon. The electric carmaker, which has gained 500% in 2020, has become the world’s most valuable automaker, despite manufacturing a fraction of General Motors, Toyota, or Volkswagen.
Shares of the electric-vehicle maker have also risen in the recent months as the President-Elect Joe Biden made boosting EVs a top priority during his campaign. Tesla shares were up 3.5% at $540.53 in premarket trading and will need to open above $527.48 to reach the $500 market capitalization.
The electric carmaker’s shares have risen nearly 28% since the S&P Dow Jones Indices confirmed they would add the company to Wall Street’s benchmark index starting Dec. 21.
The company’s CEO Elon Musk predicted last year that Tesla’s market value would reach to $500 billion. This prediction was made at a time when its market value was just under $45 billion.
Musk calculated that if Tesla continued to grow revenue by 50% for 10 years and achieved a 10% earnings margin, and its stock traded at 20 times earnings, its market capitalization would be worth about $700 billion or the “same as Apple’s is today.”
On Monday, Tesla’s market cap was shy of $2 billion to reach that figure on Monday.
Below is the current market value of automakers:
The market value of Tesla is now almost five times that of Volkswagen. It is now seven times more valuable than General Motors and 14 times than Ford Motor Co.
Elon Musk said in July that he expects the electric-vehicle maker to achieve “basic functionality” for its self-driving card by the end of the year. Tesla began releasing a beta version of its self-driving software to customers starting October.
According to Musk, the software contains a raft of “fundamental improvements, both important bug fixes and entire new areas of functionality.”
In the meantime, Tesla CEO Elon Musk is now the second-richest person, surpassing Bill Gates, after his net worth reached $127.9 billion. He is inching behind Amazon founder Jeff Bezos whose net worth is$182 billion.