Tesla, The Most Valuable Automotive Company in The World

It was only recently that Tesla has become the most valuable automotive company in the world taking the throne from both Toyota and Volkswagen.  It was really unexpected considering the recent pandemic of COVID-19 affecting the whole world which should turn the company upside down.

Credit: Visual Capitalist

Tesla was first established in 2008 when it first released an electric car called the Roadster and it was definitely something new at the time. But things did not turn out how Tesla wanted at the start and they went through tough times in order to claim the throne.

Despite many companies being affected by the unstable economic situation amidst the pandemic, the price of Tesla stocks can be seen skyrocketing as much as 348% in one year.

Source: Market Watch

As you can see from the stock price of Tesla a year ago, it was only $220 but today it has surged to a staggering $1000.

What Causes the Price Surge of Tesla?

Just in the previous years, it can be said that Tesla has reached a new milestone when the company was able to beat the value of both General Motors and Ford when combined together. These two automotive giants have fallen into the hands of Tesla which are at that time considered quite a newbie in the automotive industry.

Regardless of the sales of Tesla in the United States falling way behind Toyota, their sales overall are looking much better throughout the world. 

Things have turned out well for Tesla ever since the factory opening in China which shows how seriously they have expanded not just in China but also across Asia.

Since Tesla is considered the pioneer in electric cars, it is considered far ahead of other competing companies out there. In fact, companies like Faraday Future also cannot sustain themselves and end up declaring bankruptcy. This just shows how hard it is to compete in the market especially when Tesla is around.

In this modern world, going green is definitely beneficial not just to the environment but also to our own health. The future of Tesla looks really bright in this situation and not just that but the company will also be releasing a new pickup truck model which is not just useful but also environmentally friendly.

Want to Buy Tesla's Stocks

Some might wonder if it is worth it to buy Tesla stocks when looking at the current situation. You need to be sure certainly when will be the right time to buy and sell it by analyzing it technically and fundamentally.

Besides the price of one unit of Tesla share is definitely not cheap where it stands at the price of $1000 USD. Some might speculate that the price will surge even higher but we never know. In the future, it could rise to as high as $2000 USD.

Source: Visual Capitalist

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