Why Tesla could overtake Apple as world’s most valuable company
- 21st August 2020
- Posted by: Hakeem
- Category: Market Views
Tesla arguably has the fastest-growing stock, which has risen 806% in the past year, making it the world’s most highly valued car company based on its $373 billion market capitalization.
Tesla’s share price recently soared past the $2,000 mark, its first time in history, as the electric car maker continues its recent rally ahead of an upcoming stock split.
Tesla’s share price closed at a record high of $2,001.83 on Thursday, up 6.6%.
With many investors betting, Tesla will be added to the S&P 500 index after a strong quarterly report last month. The stock has surged over 300 percent in 2020.
Nairametrics hereby highlight five reasons why it thinks the stock will surpass Apple in the long-term.
- Tesla has announced a new five-way stock split to take effect on August 28th, which will make the company’s shares cheaper for buyers.
- The world’s leading electric carmaker is expected to soon announce that it will begin supplying “superior” battery packs to the automobile industry.
- Traditional automakers simply produce cars but in Tesla’s case, it controls the ecosystem by producing its car, the Powerwall home charger, and Supercharger refueling stations. All of these create diversified revenue streams for Tesla.
- Tesla remains the only major carmaker to have a huge physical presence in the world’s second-largest economy. With the electric-car maker’s launch of a new factory in China in 2019 and, the beginning of its Model Y models earlier this year, investors may want to continue holding.
- Tesla’s Powerpack battery storage system has made even fossil powered economies like Qatar go renewable, as the world shifts to clean energy. Qatar General Electricity and Water Corporation, known as Karhamaa, recently installed a 1 MW/4 MWh storage system at a location known as Nuaija, located south of Doha, the country’s capital.