How can the automotive industry ever lag behind in an age where most industries are powered by a technological overdrive? Ours, inarguably, is an age where we constantly stand on the verge of witnessing the next big killer; carmakers and the acerbic competition existing between them (whether concerning input cost minimization, marketing tactics, design, and whatnot) makes them seem like sharks engaged in a slugfest.
But, truthfully speaking, in times mired by this hyper-competition, not everyone is pulling all the right punches quite like Tesla.
You’ve known it as the next big disruptor in an industry that was bleeding for change. You welcomed its ingenuity as a path-breaking change without which one couldn’t imagine the tomorrows. And you’ve likened Elon Musk to a dazzling entrepreneur who’d stop at nothing in his bid to make the world take the all-electric plunge. But is that all?
To our sheer surprise, it appears that Tesla Inc has advanced even further and now overtaken none other than Volkswagen, hitherto recognized as one of the world’s largest corporations on the scale of pure value. So what do we mean by that?
Well, in the current perspective, Tesla Inc has emerged as the second most valuable carmaker in the world. Implicit, as we’ve known, in the meteoric rise of the German automobile industry in the past several years has been the sheer contribution – in both scale and numbers- of the Volkswagen marquee of cars. Reliable and popular, with wagons across various segments and pricing, Volkswagen cars have embodied the culture and necessity associated with cars.
But the narrative in the context of value has now changed the course. And in what can only be described as big step up for Tesla Inc, the feat of having surpassed even Volkswagen- one of the most widely known and regarded carmakers- is a testimony to the Musk-driven brand’s wide-reaching appeal. In fact, it’s important to understand the major catalyst to Tesla’s latest feat. It appears that only a few hours ago, the market capitalization of one of the world’s most revered names in the sphere of urban mobility pierced the $100 billion mark.
If that’s not one mighty step up for the brand, then one wonders what is?
But while Tesla inc now stands firmly as the second most valuable carmaker in the world, the question begs to be asked- who rules the roost? Well, unsurprisingly, it’s Toyota, among the world’s most widely used and familiar car brands of all time. That being said, it’s worthwhile to dabble in some numbers.
A famous daily newspaper elaborated on the developing story and quoted the following: Toyota still holds a pole position with a market cap of $233 billion. The recent gains have been fueled by a surprise third-quarter profit, progress at a new factory in China and better-than-expected car deliveries in the fourth quarter. Rather interestingly, many investors are of the view that Tesla may not actually be able to actually deliver the growth, cash flows and profits one would think the American brand is able to offer.
The basis of this unflattering forecast, many believe, rests in Tesla’s 12-month forward sales estimates. Apparently, the projections seem to suggest that the brand is not even in the top 20 in the world.