16 EV makers are worth US $1.14 trillion combined while more than 50 other automakers are worth US $1.42 trillion
Traditional automakers still account for 99% of sales worldwide
Tesla accounts for 74% of the EV market value on its own
With the push toward electrification, new brands that specialise in electric vehicles are becoming very valuable, so much so that 16 of them combined are worth almost half of the entire automotive industry.
Indeed, EV makers are worth approximately US $1.14 trillion while the rest of the automakers, over 50 of them) are worth US $1.42 trillion.
The leader in terms of valuation, for all automakers, is Tesla which accounts for 74% of the value of every EV manufacturer combined. Three other electric only brands are in the top 10: Rivian, BYD and NIO.
Despite this very high valuation of EV only brands, traditional automakers still generate 99% of the worldwide car sales, out of which 2% are electric vehicles. The most valuable traditional brands are Toyota, Volkswagen, Daimler and General Motors.
This discrepancy is due to the belief by many that EV only brands will dominate the car industry in a few years because the traditional automakers will not be able to successfully transition to electric vehicles.
Another factor is the belief that electric cars generate more profit per unit than gasoline powered vehicles, which can result from the tendency of manufacturers to sell their EVs online, allowing them to cut the dealership costs and therefore make more profit for the same asking price.
Also helping EV maker valuation, these companies often offer options and services in the form of subscriptions which provide them with a steady stream of income every month after the sale of its cars.
Opinions are mixed on the subject, but many believe the market will stabilise once more automakers begin offering competitive EVs in the next few years.