Tesla (TSLA) shares rose from about $ 80 / share at the end of 2019 to almost $ 700 / share.
Spurred on by its inclusion in the S&P Index, the company’s market capitalization is now more than $ 650 billion – possibly representing the largest large-cap bubble in history.
“The notable competition will include the Audi Q4 e-tron and Q4 e-tron Sportback, BMW iX3 (in Europe and China), Mercedes EQB, Volvo XC40, Volkswagen ID.4 and Nissan Ariya, while the cheapest and available now are the excellent Hyundai Kona and Kia Niro, all electric, overhauled small crossovers extremely well with an EPA range of 258 miles for Hyundai and 238 miles for Kia, at prices below $ 30,000, including the $ 7,500 US tax credit. this, the Model 3 now has incredible direct “sedan competition” with the beautiful new Volvo Polestar 2 and the premium version of the Volkswagen ID.3, and next year with the BMW i4. “
– Mark Spiegel
As noted above, in the face of a violent attack by competition – by Audi, Volkswagen (VLKAF) and others – and a relatively shallow gap, Tesla’s market capitalization is now more than 5x that of Ford (F), General Motors (GM) ) and Fiat Chrysler (FCAU), which, as a group, sells 17 million units / year against Tesla’s estimated production of 500,000 cars in 2020.
Tesla’s has little ownership in terms of electric car technology – while its global competitors have more than a century of experience in the consistent manufacture and distribution of high-quality cars, and which subsidize ongoing operational losses from their electric car efforts.
Tesla has existed for 17 years and, adjusted for the sale of emission credits, has never been profitable despite having no competition and no need for advertising.
Despite limited global competition, Tesla boosted growth by cutting unit prices. What happens when the well-evaluated competition is preparing to be delivered in 2021? Market share will be pressured and operating margins will decrease.
Meanwhile, the turmoil in management has intensified over the past two years.
Result
In an era of cultism, Tesla is the stock (and Bitcoin is the currency)!
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