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Oxbotica, Navtech to partner integrated radar navigation and perception system development

Oxbotica, a key vehicle autonomy play and Navtech, a global radar solution company will partner development of a radar-based navigation and perception system that will be launched later this year. The product represents the latest advancement in radar-based technology and the partnership marks an important milestone in Oxbotica’s plans to take its software from development… Continue reading Oxbotica, Navtech to partner integrated radar navigation and perception system development

New Honda concept aims to ease transition to self-driving cars

Honda has unveiled the Augmented Driving Concept as a roofless four-seater with fully autonomous capabilities. Designed “to address the cultural transition to autonomous vehicles”, the concept offers drivers the choice between taking full control or allowing the car to drive itself. There are eight driving modes, offering varying degrees of input from the vehicle, with Honda claiming… Continue reading New Honda concept aims to ease transition to self-driving cars

ommunauto Looks to Bring Carsharing Back to Calgary

The city of Calgary hasn’t had an operating carsharing service since car2go left last fall. Photo via Communauto. Carsharing service Communauto hopes to expand to Calgary after discussing parking rules with the city, according to a report by the CBC. Communauto is negotiating with the city about its parking time limits in certain neighborhoods, says the… Continue reading ommunauto Looks to Bring Carsharing Back to Calgary

Xpeng Motors Partners with Car Rental Platform

Xpeng Motors, an electric vehicle company, has partnered with Xiaoju Car Service, a car rental and maintenance service platform backed by Didi Chuxing. This partnership will form a smart mobility ecosystem, including online car rental, long-term car rental, charging, and auto maintenance services. The Xpeng-Xiaoju Chinese Lunar New Year car rental service launched in Hangzhou… Continue reading Xpeng Motors Partners with Car Rental Platform

Bounce raises $97m funding led by B Capital, gets valued at $450m

App-based two-wheeler rental startup Bounce, run by Wickedride Adventure Services Pvt. Ltd, has raised ₹692.39 crore ($97 million) in a Series D round led by Facebook co-founder Eduardo Saverin’s venture capital fund B Capital, according to documents sourced from business intelligence platform Paper.vc. Its existing investors, including Sequoia Capital, Accel Partners India and Chiratae Partners,… Continue reading Bounce raises $97m funding led by B Capital, gets valued at $450m

Transport app FlixMobility achieves 37% passenger growth in 2019, eyes India

BERLIN (Reuters) – Transport app FlixMobility reported on Thursday a 37% increase in passenger numbers last year, as Germany’s best-funded tech startup claimed the mantle of the world’s biggest provider of intercity bus services. FILE PHOTO: Passengers walk in front of a FlixBus intercity bus at the Carparkplatz Sihlquai bus station in Zurich, Switzerland October… Continue reading Transport app FlixMobility achieves 37% passenger growth in 2019, eyes India

Carlos Ghosn Calls Upon The Press To Defend Himself In Beirut

This is probably the most extended video we have ever shared here at InsideEVs. Believe us when we say we have listened to every minute of it. It was a story worth covering: the escape of Nissan’s EV spearhead, Carlos Ghosn, from Japan to Lebanon. If you think the getaway was worthy of a movie,… Continue reading Carlos Ghosn Calls Upon The Press To Defend Himself In Beirut

BMW And Daimler Subsidiary Purchases 60 Tesla Model 3 Sedans

BMW and Daimler have merged together on multiple future mobility efforts. One such joint effort is ride-hailing outfit Free Now, which used to be known as MyTaxi. As the automakers move forward with expansion into more German cities, they’ve decided to add 60 Tesla vehicles to the Free Now fleet. A report by Electrive points out… Continue reading BMW And Daimler Subsidiary Purchases 60 Tesla Model 3 Sedans

Carlos Ghosn’s side of the story

Carlos Ghosn’s side of the story Read M&A insights you won’t find elsewhere Exclusive scoops Smart data to help spot risk and opportunity Analysis of broader trends in M&A Lex, our agenda-setting business commentary (Premium only) Due Diligence, an exclusive M&A newsletter (Premium only) Choose your subscription Trial Not sure which package to choose?Try full… Continue reading Carlos Ghosn’s side of the story

Tesla Is The Most Valuable Auto Company In The History Of America*

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Published on January 8th, 2020 |

by Vijay Govindan

Tesla Is The Most Valuable Auto Company In The History Of America*

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January 8th, 2020 by Vijay Govindan

Barron’s noted on January 7th, 2020, that Tesla had become the most valuable auto company in the history of America. Let me repeat: Not just currently. We are talking about the most valuable American auto company since America was born. Congratulations to Elon, Tesla, and the team for unlocking this achievement!

Tesla beats out the old automaker market cap record held by Ford in 1999, at $81 billion. How valuable is Tesla? After January 8th’s surge, Tesla is valued at nearly $89 billion. Sure, the purists will argue it’s not an inflation-adjusted peak or the largest enterprise value (enterprise value includes equity and debt). Let’s call it a non-inflation-adjusted peak and market cap only. It’s impressive, nonetheless.

Tesla transformed the push for sustainable energy and became the most valuable American auto company within 10 years. We are not talking about high-margin phones. We are talking about a capital-intensive, low-margin, ruthless, heavily entrenched, lobbyist-backed industry.

Another way to note the importance of Tesla’s accomplishment is comparing Tesla with General Motors, Ford, and Fiat Chrysler’s market cap. According to Yahoo Finance, as of 1/8/20, GM was worth $52B, Ford was valued at $38B, FCAU at $25, and Tesla at $85B. Tesla’s value is larger than GM and Fiat Chrysler put together, and very close to being larger than GM and Ford put together. (On Google Finance, a bit different, Tesla is worth more than GM and Ford combined). In fact, Tesla is not too far off from being worth more than GM, Ford, and Fiat Chrysler combined.

As Frugal Moogal and I have speculated over the last few weeks, there are many reasons for Tesla’s surge. One reason that’s rarely discussed is the expected surge in Tesla auto sales over the coming two years. The below chart excludes the growth of Tesla Energy in the next two years, but it attempts to forecast Tesla’s coming auto sales.

My personal forecast.

Noted Tesla bear and Credit Suisse analyst Dan Levy states, “The framework contextualizes the lofty assumptions embedded in the stock – to justify the current stock price one arguably must assume that by 2025 Tesla will grow annual volume to 1.2mn units.” The same analyst raised his 12-month Tesla price target from $200 to $350 in an attempt to move from totally absurd to semi-reasonable.

I expect Tesla to produce 150,000 units in China and produce another 150,000 Model Y this year. As the ramp continues, I expect both to double production next year, joined by production of the CyberTruck and the Berlin factory coming online. Sometime during 2021, Tesla will have produced more than a million vehicles within a year. This is remarkable. I am hesitant to estimate beyond 2021 because Tesla is growing so fast. I don’t consider these super bull numbers, rather numbers based on what is genuinely possible.

*The asterisk in the title is mentioned since everyone is treating Tesla as simply an auto company. I disagree with that simplification, as do many of the writers here on CleanTechnica. Tesla is an energy and technology company, which happens to masquerade as an auto company. This is one reason why Wall Street analysts are completely befuddled. Most of them stick to one industry segment. Tesla crosses multiple major segments. That’s hard for the spreadsheet jockeys to model. What they miss is that the energy and technology markets are vastly larger than the auto market. At its, peak Exxon traded close to $500B in value. Microsoft and Apple are worth more than $1,000B at the moment. For more on this topic, see: “No, Tesla Is NOT The Largest US Automaker Ever.”

Disclosure: I bought back my Tesla shares a few days ago and am long on Tesla cars. The FUD didn’t reach the levels I expected. Don’t worry, I got pilloried hard for buying and selling Tesla from comments in my last post. I expect the same in this one. Keep it up!

Use my referral link to receive 1,000 free Supercharger miles with the purchase and delivery of a new Tesla vehicle, or earn a $100 award after system activation by purchasing or subscribing to solar panels: https://ts.la/vijay59877

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About the Author

Vijay Govindan Vijay Govindan is a Cleantechnica writer part-time. Through his writing Vijay seeks to elevate the realized potential of humankind.

Against human trafficking. Tesla Model 3 LR owner. His claim to fame is Tesla and Elon have commented, liked or re-tweeted an article he wrote with the Tesla community. Just once. 😉

https://cleantechnica.com/2019/06/23/our-new-tesla-myths-page/

#WeChooseTesla, #RenewableEnergy and #YangGang supporter. Long Tesla shares. Has a healthy skepticism of the Q branch of the Tesla investment community. Made it to one $tslaq block list.

Follow him on Twitter @vijaygovindan17. If you read this far, wow, 👏🏽 and 🙏🏽.

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