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The Market For Electric Vehicles
A stock market bubble or the way of the future?
A recent business report (at the time this post was written) stated the most recent valuation of Tesla to be in excess of $450 Billion dollars, roughly 250 times the company’s expected earnings this year. According to Bloomberg, this makes Tesla the 10th most valuable publicly traded business.
Compare this valuation to three Chinese EV companies; Nio Inc., XPeng Inc., and LiAuto Inc., listed on the New York stock exchange that have a combined market cap of $154 Billion. Not one of these three companies is profitable. In the last quarter of 2020, the three companies combined have delivered less than 30,000 vehicles. General Motors, by comparison, announced it delivered 492, 489 vehicles in the same quarter. None of the three Chinese companies are profitable and do not look like being so in the near future.
From New York to London to Bejing, investors are betting a wide variety of electric-car startups can follow the example of Tesla. The company is on a pace to sell over 1.3 million EV vehicles in 2021, possibly as high as 1.5 million. By doing so, it will create its first annual profit. The Tesla company is scheduled to…
