Last week, the most talked about topic in the technology world was Tesla Company and its owner Elon Musk.
Shares of Elon Musk’s Tesla jump to 555 billion dollars. At the same time, Tesla became the sixth-largest company in the United States.
As Tesla’s prices soared, so did the assets of its CEO, Elan Musk. He also became the second richest person in the world.
Musk is the second richest man in the world, behind Bill Gates, the owner of Microsoft.
What are the investors of electric car maker Tesla seeing in the company this year? Which you haven’t been able to find before? Due to which its share price is constantly rising.
At the beginning of 2020, Tesla had a market capitalization of 80 billion. Even then, Tesla’s market value was higher than necessary and the value of a business that was not very profitable could not be much.
But investors have dismissed such negative perceptions of Tesla. The company’s share price has been rising throughout the year and now the market value of the Tesla company has exceeded 5.5 trillion.
Tesla’s value now exceeds the combined value of Toyota, Volkswagen, Hyundai, GM, and Ford.
According to Tech Tens, those companies made a total of 50 billion in profits last year. Some of them are now suffering financially due to the Corona epidemic.
Tesla, on the other hand, is on track for a 1 billion profit this year. Looking at the company’s valuation, is it possible for investors to make 50 profits in the near future?
According to Tesla fans, the company has given a new direction to the auto industry. But even at the beginning of 2020, when Tesla was an 80 billion company, that was true. Some analysts say investors are gambling on Tesla shares.
The importance of Tesla
Just as Burgundy’s 1945 bottle and Picasso’s painting were recognized. Just as having a small flat in London or San Francisco is a symbol of luxury for the affluent and wealthy, Tesla’s valuation is now the same. No matter how high the price of Tesla’s cars, buyers are buying it as a product rather than a price.
Ironically, on May 1, the company’s CEO, Elon Musk, tweeted that Tesla’s share price had risen. The company’s share price fell by 14 billion as a result of his tweet that his company’s share price was more than needed.
However, the price of Tesla has quadrupled since then. But what about the future? It is difficult to guess.