Thursday, February 27, 2020
News Tesla Is Not A Larger Car Company Than Volkswagen

Tesla Is Not A Larger Car Company Than Volkswagen

Tesla’s reality is that it won’t have to deal with legacy like other OEMs will.

  • The shift to EVs in the market means Tesla has nothing to lose.
  • The stock-price potential for Tesla is greater.
  • Volume- and resource-wise, VW is still considerably more important.

This story is complex in the sense that, once more, Tesla stock values remain heavily speculated. As the world shifts over to the electric car, which requires less of everything, brands like Volkswagen and GM will need to deal with countless assembly plants, and tens of thousands of employees that may be idled for good.

Note that Volkswagen comes up in these stories as Tesla’s market value grew past the $100 billion mark earlier this week, moving beyond the German giant leaving only Toyota ahead of it at nearly $240 billion. As VW was (is) the second most valuable carmaker, and likely the 2019 volume leader in the World. Having said that, this means that Tesla has handily beat everyone else.

This story, published in the Wall Street Journal, explains how having multiple plants can both be a burden and an advantage as the industry shifts. The same goes for have only a handful of assembly lines, for Tesla, when volume and scale are factored in. One thing is certain, however. VW’s decision to go full-electric a few years ago will give them an edge over most of its competition.

Essentially, all other car company CEOs are borderline panicking about the future while Musk is dancing on a stage in Shanghai as the first Chinese-built Tesla cars are delivered to their new owners.

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Matt St-Pierre
Matt St-Pierre
Trained as an Automotive Technician, Matt has two decades of automotive journalism under his belt. He’s done TV, radio, print and this thing called the internet. He’s an avid collector of many 4-wheeled things, all of them under 1,400 kg, holds a recently expired racing license and is a father of two. Life is beautiful. Send Matt an emai

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