Tesla Inc. shocked the world last month when it overtakes Volkswagen’ $99.4 billion market capitalization, to become second most valuable car manufacturer in the world.
Eight years ago, Toyota Motors overtakes Volkswagen to become world’s most valuable car manufacturer.
In 2012 when Toyota Motors outperformed the Volkswagen Group as the world’s leading car manufacturer, it was a big deal to beat a company that owns at least 10 brands under its umbrella, and Toyota hasn’t looked back since then.
For 2015 alone, Toyota sold 10,15 million cars, with a sales record of 10 million units set for 2014. That wonderful No1 spot that Toyota has been boasting about ever since, seems to be reachable within the next five years by the most talked about electric car maker, Tesla.
Battery Electric Vehicles (Tesla) vs Internal Combustion Engine Vehicles (Toyota)
This is more than becoming the most valuable car maker in the world, it is more about a 100% BEV (battery electric vehicle) maker overtaking the 100% ICE (internal combustion engines) car maker. This is a war of Electric VS Fossil Fuels. This is Tesla Vs Toyota.
Traditional automakers are trained professionals that make their money from fossil fuels. It is going to take them more than starting from scratch, rebuilding their production lines, eliminating the middlemen (car dealerships), creating a new simple distribution network, employing new smart workers that believe in changing the world through electric vehicles, building battery electric vehicles with best technology that turns Tesla’ battery technology into a joke, for them to make a cent from BEVs.
Let’s face it, ICE car makers are the real Fossil Fuel villains. It took Tesla CEO Elon Musk’ strong believe in his vibes, several failures, sleepless nights at gigafactory, several court dates through his problems with SEC (sec security exchange commission), building the best electric cars with the best battery technology that is atleast 5 years ahead of competitions, to make Tesla Inc!. the second most valuable car maker in the world. This are exactly what I believe will take every ICE car makers to go through, before they will overtake Tesla once Tesla becomes the most valuable car maker in the world, within the next five years.
Toyota Motor’s TM shares moved up +1.5% to close the trading session at $143.85 on Feb 6, after it reported improved year-over earnings in third-quarter fiscal 2020 (ended Dec 31, 2019). Tesla Inc!. shares were trading +6.64% at $619.57 per share during after-hours trading after the electric car maker reported fourth quarter earnings in January 29th. The difference is crystal clear in terms of how these companies’ investors are receiving earning news.
According to one Toyota executive recently interviewed by Forbes.com writter “Peter Lyon”, “We might not have an EV in our lineup at this moment, but we have the necessary technology to release one almost immediately when the time is right.” He added that the company has been gauging market reaction to EVs, while it progressively electrified its entire lineup, a task that will be completed by 2025. YES!, 2025 is when Toyota plans to take over the world of EV. Laughable right?.
Tesla’ Battery and Autonomous Technology
Tesla Model S AWD LR has a mind blowing 373mi range, goes from 0-60mph in 2.4s, and cost $74,490 almost half of what Porsche Taycan turbo s cost.
I don’t think anybody knows what Tesla battery technology limit is, or how advance Tesla’ battery technology presently is. I believe Tesla is holding back a chunk of information. Tesla produces its own lithium-ion cylindrical batteries in-house, while others outsource it.
Think about it, the old Tesla model X built over 4 years ago is still years ahead of all the electric vehicles other ICE car makers are putting out there.
Tesla’ Acquisition of Maxwell Technologies
For $218 million, Tesla acquired Maxwell Technologies in February 2019. A deal aimed at helping the electric car maker improve its battery technology significantly and lower the costs of its battery.
“We believe this transaction is in the best interests of Maxwell stockholders and offers investors the opportunity to participate in Tesla’s mission of accelerating the advent of sustainable transport and energy,” Maxwell CEO and President Franz Fink said in a company announcement.
In April 2020, Tesla Battery Day, Tesla is set to present what they have been working on with the Maxwell Technology acquisition. According to Elon Musk on one of his most recent interviews on a podcast with Third Row Tesla, Tesla has a lot of surprises in store for investors on that day.
“Maxwell is a big deal. Elon hints at cost reductions coming, which will be explained at the coming battery day in a few months.”. “Other car companies are not making batteries, modules, or packs.” – MuskElon Musk
Tesla’s AI Chip Holds the Key to ‘Full Self-Driving’
In April 2020, there will be Tesla Battery day. In April 24 2019, CEO Elon Musk says that in a year more than 1 million Teslas will be capable of driving themselves while a person sleeps in the driver’s seat. We are now two months away from his prediction.
Tesla now has a custom-designed artificial intelligence chip that Tesla has been installing since last year. This custom-designed AI chip will allow Tesla cars to become completely self-driving without human supervision.
According to Tesla: “Our new Full Self-Driving Chip houses 6 billion transistors and is capable of processing up to 2300 frames per second – a 21x improvement over previous gen hardware”
Tesla Charging Network
With a rapidly expanding Supercharger locations placed on well-traveled routes, Tesla can get you anywhere you want to go.
Tesla presently has 1,804 Supercharger Stations with 15,911 Superchargers. That is all you need to know about this section. Arguably the largest electric vehicles charging network by manufacturer, more that all competitions combined.
Tesla has hundreds of Supercharger Stations and Superchargers opening soon.
Tesla Model Y
Tesla Model Y has a 540 km range (WLTP est.), 0-100 km/h acceleration in 3.7 seconds and best-in-class storage.
The Tesla Model Y is an electric compact crossover utility vehicle (CUV) in development by Tesla, Inc. It was unveiled in March 2019, and planned to begin deliveries in March 2020. It is the second vehicle based on the Model 3 sedan platform. Model Y will offer optional third-row seats for a seven-passenger seating capacity.
In November 2019, Tesla announced that the Tesla Model Y would be the first vehicle to be assembled at Giga Berlin.
Tesla reported, during quarter 4, 2019 earnings report on January 29, 2020, that Model Y production has already started in the Fremont factory and that delivery of Model Y will begin in Q1 2020.
Model Y according to Elon Musk, will out-sell Model 3. This alone is a nightmare for all ICE car makers and all the so-called Tesla killers, because Model 3 is years ahead of competition in terms of sales, price, range, durability, autonomous technology, speed, and many more.
The Tesla CyberTruck
The Tesla Cybertruck according to Tesla is a better utility than a truck with more performance than a sport car.
The Tesla Cybertruck is an all-electric, battery-powered, light commercial vehicle in development by Tesla, Inc. Three models have been announced, with range estimates of 250–500 miles and an estimated 0–60 mph time of 2.9–6.5 seconds, depending on the model.
The truck is set to go into production starting in late 2021 and will start at $39,900.
“It’s gonna be awesome, it’s gonna be amazing,” Musk swooned on a 2018 interview with Recode. “This will be heart-stopping. It stops my heart. It’s like, oh, it’s great.”
“A lot of reasons why people buy pickup trucks in the U.S. is because it’s the most badass truck,” he said on the podcast. “Which one’s the toughest truck? What’s tougher than a truck? A tank. A tank from the future.”
Five days after Tesla unveiled its Cybertruck on November 22, the number of preorders hit yet another milestone. Once again taking to Twitter, CEO Elon Musk tweeted “250k,” most likely pointing out the number of preorders the new electric pickup truck has raked in. The preorders come with a $100 USD deposit, which as at then translates to $25 million USD for the company in just five days “with no advertising and no paid endorsement.”. This number might have tripled by now.
Notice we didn’t mention Tesla Energy, Tesla Semi, and Tesla Roadster in this part. We leave those for the second part of this article about how Tesla will be the most valuable car maker in the world in 2015.
In the most recent ARK Invest CEO Catherine Wood’ interview on CNBC Fast Money, Cathie explained why Tesla can hit $7000 in 2024, and also the chances of Tesla Share price surging above $7000 and reaching $15000.
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