A lot of people still do not believe in the superiority of Tesla despite its good performance lately in revenues. Even with 4 straight profitable quarters and the huge possibility of the company being qualified for the SNP 500 stock market, there are still speculations circulating that Tesla will eventually go bankrupt and the high-end traditional automakers are going to release their own versions of an electric car, wiping Tesla off the market.
Tesla has performed well in terms of revenues in the last years, with a total market cap of 261.51 billion dollars. The company’s stocks have also continuously climbed up in the last quarter, giving them the ability to be part of one of the largest stock markets in the US. When this happens, investors will buy 25M company shares that equate to about 34 billion dollars in total. Tesla already has 8 billion dollars in its bank, so the company’s finances would balloon up to more than 40 billion dollars.
All these profits were made even while Tesla is putting up 3 new Gigafactories. And now with a ton of money in the bank after the SNP 500 entrance, Tesla can just basically build 5 more Gigafactories in the following year with still a lot more to spare. This officially makes the bankruptcy issue irrelevant.
Furthermore, Tesla is financially stable enough to acquire new startup companies that possess promising technology. Tesla bought Maxwell Technologies in 2019 for only 218 million dollars and is planning to buy Piedmont Lithium.
This will push Tesla farther ahead in the EV market, having it's very own lithium mine, processing plant, and battery factory. By 2025, Tesla is planning to produce 4.5 million cars. While its competitor, Volkswagen only aims to make 1.5 million in the same year, and it is still tentative whether all of these will be electric cars. Also, it would seem as though the electric cars by the luxury brands do not seem to appeal that much to people. Porsche produced some 30,000 of its Taycan but was only able to deliver less than 5,000 units. Mercedes too, aimed for a 25,000 production of the EQC but managed to only make 7,000. Bottomline, they failed.
“Let's not forget that despite many early claims, followed by multiple attempts from OEMs, Tesla's range continues to dominate on a level that seems almost impossible to live up to.”
Others claim that one of the rising EV companies in China such as Nio, BYD, XPeng, will overthrow Tesla. But reports say that this is not even possible even in the country itself. The Tesla Model 3 sold over 11,000 in the month of May alone, and the numbers rose in June to a little more than 15,000. Their deliveries rose up in the first half of 2020, while the rest of the other car brands went down.
Take note that the electric car industry is not the only venture that Tesla has. Tesla energy is constantly upping up their game with solar panels, the Powerwall, and battery power packs. With the development of new self-driving software, the in-car app store, and the establishment of Starlink, Tesla’s cars may just be a total tech machine with Internet access.
Tesla has long been considered a “gold standard” for electric vehicles. And other conventional car makers that mainly focus on gas-fueled cars still have a long way to go to even come close to what Tesla has done in the industry.
And now Tesla is slowly making its vision of sustainable living a reality. The world going solar and electric is inevitable, and soon enough the go-to brand for people will be Tesla, as it has made its mark on the world and will continue to surprise the world with more technological innovations.