Tesla will be a $1tn Market Cap

As it stands today (02/08/2020) the market capitalisation of Tesla is $266bn. This Market cap shadows the likes of Ford ($26.9bn), GM ($35.6bn), Fiat (13.35bn), VW ($64.34bn), Mercedes-Benz ($39.26bn), and BMW ($34.73bn). In fact, not only is it the biggest yacht in the Marina, its market cap is higher than all of them if they were all ready to stand on top of each other. This has drawn attention amongst some analysts, that the current valuation of Tesla is inflated and hard to justify as it stands. Needless to say, some hedge fund managers have also contested the valuation and have placed short positions against the company — I hasten to add with many a casualty.

As the likes of Amazon, Microsoft and Apple sunset into the $2tn ballpark, it wouldn’t be a quixotic opinion to speculate Tesla to be in the realm of $1tn valuation in the next 3 years. After all, Tesla has all the hallmarks of a 1 trillion contender. even if we were to take from the low hanging fruits of Tesla’s goodwill and IP we could draw from the Level 5 Autopilot features and its potential to be licenced, it’s powertrains that have by now a good pedigree and it’s battery packs which have pushed the envelope of range and tenure. Rather, Tesla’s repute for a $1tn valuation stems from its ability and strategy to embed itself permanently into the future of world mining, securing reserves and stockpiling. Tesla’s R&D early on allowed them to recognise with scientists the limited supplies of materials needed to produce Electric vehicles.