Tesla's market capitalization approaching $100 billion

the Rapid growth of Tesla stock in recent months has caught many investors who made bets on lower prices. In June 2019, the shares cost $179, and the market capitalization was approximately $32 billion But it has now gotten to $100 billion, and it promises a generous reward to the CEO of the electric car manufacturer Elon musk.

14 Jan quotes Tesla rose to $538; however, by the close of trading on Friday, January 17, the stock fell to $510,5, market capitalization of $91.8 billion If quotations reach $554,8, the company will be worth $100 billion Tesla, the largest us automaker: Ford Motor and General Motors market capitalization is $36.3 billion and $50.8 billion, respectively. Her leadership specifies, in particular, how strong the faith of investors that electric cars will displace from the market of cars with internal combustion engine. However, prior to Toyota with its market capitalization of $195 billion, Tesla is still far.

If the value of Tesla will stay above $100 billion a year Musk will get a stake of nearly $350 million And the total remuneration that he can get by achieving certain goals by 2028, is $50 billion. In particular, the market capitalization of Tesla will have by this point grow to $650 billion.

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Much worse are things for those who do not believe in the company Mask. Estimated at S3 Partners, losses incurred from the beginning of the year, investors bet on a decline in shares of Tesla, has already exceeded $3.27 bn for the past six months of these skeptics became less, writes the Financial Times (FT). If in mid-2019 in the short positions used 43.7 million, or 24%, of the company’s shares by the end of the year mindhave Nicholas to 26.3 million, the lowest in 10 years. This is due to the fact that Tesla began to receive more good news.

Less than a year ago there were rumors about the possible bankruptcy of Tesla and Musk did not want to attract additional funding. But in may the company issued new shares and convertible bonds by more than $2 billion. This has strengthened its financial position, and in the following months she solved their operational problems. As a result, in the third quarter of 2019 Tesla suddenly got a $143 million net profit after $1.1 billion loss in the first half. In November, Musk announced plans to build the first European Tesla factory near Berlin. And in January the company started to supply Chinese buyers, the electric car Model 3, assembled at its plant near Shanghai. Jefferies analyst Philip Usua explains these changes by the fact that Musk refused to overly ambitious plans and focused on optimising the production process.

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most of all believed in Tesla analyst at New Street Research Pierre Ferragu, notes the FT. He’s still in mid-2018, predicted that its stock price will rise to $530. Now he says that their value can grow to $2000. But Ferragu warns that Tesla could be the next automaker with low margins and mediocre market capitalization, if we lose competitive advantage in technology. If Tesla will be able to save it, it will occupy 30% market share of electric vehicles by the mid-2020s, he said.

Tesla now for the first time facing serious competition, as major car manufacturers are increasingly investing in electric vehicles. For example, on 16 January, the Fiat Chrysler Automobiles and Taiwanese Foxconn announced the establishment of a joint venture, which will develop and produce electric cars. “If industry will be too many players and competition, [Tesla] will lose all their benefits,” says USW (quoted by FT).