At the time of this writing, Tesla is not only the most expensive company that produces electric cars, but in terms of capitalization, it has already significantly overtaken the traditional automakers such as Toyota and Volkswagen. According to Yahoo! Finance at the end of August 2021, all Tesla shares are collectively worth almost $ 705 billion, and according to this indicator, the brand is in 8th place in the world in the overall ranking. Nobody who makes vehicles has ever climbed this high. The capitalization of the same Toyota at the moment is just over $ 244 billion. Only a third of Tesla shares.
Yes, it’s almost useless to argue with Tesla’s overwhelming success. In the not too distant past, many still talked about the adequacy of Elon Musk, the permanent head of the company, and today the brand plans to produce 20 million electric cars a year (if anything, this is twice as much as Toyota does). I wonder how Tesla managed to fly so high. This is both the merit of Elon Musk and the vague actions of other car manufacturers who have resisted the electric future of the transport industry for too long. This is what will be discussed further.
Elon Musk is one of the most charismatic personalities in the world
Today it is quite difficult to point to someone even more charismatic than Elon Musk. Genius, billionaire, philanthropist – it was from him in Marvel that the main character of the film “Iron Man” was drawn. Once Steve Jobs was considered a more significant figure in the development of the world, but today absolutely anyone who is interested puts the leader of Tesla in the first place. However, his success is not limited only to this company – the exploration of space with SpaceX is no less surprising. What can we say about PayPal. Interesting, inspiring, extraordinary – only this is enough for him to attract attention and investment.
In the work of Tesla, Elon Musk does not tolerate compromises
In this sense, Elon Musk is also very much like Steve Jobs. Apple has never been content with half-measures and more than once released products that turned the industry upside down, without reasoning about their final cost. Tesla is following exactly the same path – the company sets a goal and achieves it, despite many difficulties. Take its zero emissions policy – Tesla has never given up on it for the sake of an easier path. The company did not even have partners from the world of internal combustion engines. She also didn’t play with hybrids and always used renewable energy in her factories.
It is important for car companies to clearly plan for the future.
Concrete planning for the future is important for any modern company. However, due to the abundance of technological solutions, complex international relationships and the long development time of the final product, automakers seem to be the most vulnerable in this regard. Elon Musk originally planned to make the largest modern car company and did not change his plans. Moreover, he managed to show the world that it is possible to make a vehicle worthy of attention even without an internal combustion engine. Moreover, such a car will also be faster, more comfortable, and also convenient.
Tesla electric cars seem to be the most desirable for users
I propose to return to 2010. Around this time, the first modern serial electric vehicles (hello, Nissan Leaf), as well as hybrids with the ability to charge (the Toyota Prius, which was the most relevant option for that time), began to roll off the assembly lines. The then models had an extremely limited maximum cruising range (the Nissan Leaf had a little over 100 kilometers). And their positioning in the market was purely budgetary. They saved consumers’ money, but they were not going to give them any special emotions. Tesla immediately started making luxury electric cars – they are S. 3. XY, and that’s it.
Tesla was not afraid to dive into the creation of electric cars with a head
Most car companies saw no future in electric cars. The rejection of internal combustion engines seemed to them to be something so far away that it even became scary. That is why they started with the same Toyota Prius and Nissan Leaf, which were needed only for the initial run-in of technology. However, Tesla has always had a completely different opinion. Moreover, in order to create the infrastructure necessary for electric cars as quickly as possible, Elon Musk opened the world free access to all his patents. In this way, he further stimulated the creation of a new market. And it worked!
Tesla has created its own component supply chain
It is important to understand how many modern car manufacturers and companies operating in other industrial segments operate. Many of them outsource most of the components of their products, and they themselves are actually engaged in SKD. Tesla took a completely different path. Thanks to the charisma and other leadership qualities of Elon Musk, she attracted enough investment to control almost the entire supply chain from “A” to “Z”. Buying any variant from the Model line, the new owner gets a product created by Tesla, and not someone else.
Tesla has learned to entice the best minds from around the world
There are so many potential factors why Tesla is relatively easy to attract top talent from around the world. However, there are only a couple of main ones. Firstly, one cannot discount the personality of Elon Musk, who attracts top leaders from different parts of the world to take part in the worldwide transport coup. Second, it’s important to understand that Tesla is the only car company based in Silicon Valley. This is a California-based haven for top-tier start-ups and talent, with an unparalleled dose of technology enthusiasm.
Tesla staked on explosive growth and benefited from it
Today it is extremely difficult to break into a new industry for oneself and occupy at least some significant niche there. Therefore, the traditional path of most companies is a leisurely, systematic development from very modest turnovers and beyond. However, Tesla had a completely different vector of development – this is unequivocally hinted at at least only by its “Gigafactories”, which produce batteries. Yes, a sudden injection of large sums of money is an extremely risky business. Nevertheless, it is precisely this that can lead to the successes that Tesla can boast of today. Such an explosive growth can only be envied.
A source: HotCars.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
