(News Bulletin 247) – At the Vivatech event, the manager judged that this factor was the main factor for the car manufacturer’s market capitalization.
It is always difficult to know if a company is well valued by the market. As such, the valuation of Tesla is the subject of recurring questions.
At the VivaTech event in Paris on Friday, Elon Musk himself admitted that he did not expect his automotive group to be so well valued by the market. “Not at all because it’s really extraordinary,” he replied, questioned on this point by Maurice Lévy, chairman of the supervisory board of Publicis. He nevertheless recalled that it was not he who “fixed[ait] the price of Tesla on the stock market”.
Elon Musk also believed that the main “driver” of Tesla’s stock market valuation was “the autonomy” of its electric vehicles.
>> Access our exclusive graphic analyses, and enter into the confidence of the Trading Portfolio
A recent rally of 13 consecutive increases
“The valuations are sometimes strange. (…) I think that the value of the company depends above all on the autonomy”, he estimated. “We have nearly 2 million vehicles (the sales expected this year, editor’s note) but this only represents 2% of world production”, he recalled to explain that it is above all this autonomy which carries the market capitalization of the company.
Tesla currently weighs just over 800 billion dollars on the stock market, much more than other automotive groups such as Ford or General Motors (57 billion and 52 billion dollars). The manufacturer currently represents the world’s seventh largest market capitalization.
Tesla stock recently posted an impressive streak of 13 consecutive gains on Wall Street, a streak that ended on Wednesday.
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.