Tesla is the only automaker to ever have a market cap that surpassed $1trillion
Tesla is currently valued at $36.27 billion
This high valuation is due to Tesla being more of a software company than an automaker
Tesla is doing very well in 2021 despite all of the issues caused by the pandemic that plagues every automaker, so much so that it is the brand that saw the largest value increase year over year, every activity sector combined.
Indeed, Tesla saw its value increase by 184% to reach $36.27 billion, the highest valuation of any automaker and one of the 20 most valuable brands in the world full stop.
This very high valuation is caused by investors not looking at Tesla as just an automaker, but also a software and technology company, combined with a battery maker and an artificial intelligence company.
Even when compared with technology brands like Salesforce, Microsoft, Apple and Adobe, (which were all among the top 10 fastest growing companies in 2021) Tesla’s growth rate is much higher, with the runner up only managing a 37% increase in value and the tenth position achieving 24%.
Many automakers say that Tesla is valued unfairly, since their own valuation is much lower despite higher sales and the arrival of their first electric vehicles. The brand’s diverse activity sectors and the frenzy for startup electric car companies are the reasons why Tesla is so much more valuable than any of its competitors, and it is why we also saw Rivian skyrocketing a few weeks ago, to become the third most valuable carmaker, despite having sold only a couple hundred vehicles to date.
Many believe that the company’s value will be readjusted downwards when other automakers begin to offer larger EV portfolios to compete with Tesla, but the current crop of new electric vehicles was not enough to slow it down, so it might keep breaking records for a long time still.