A journey of the latest add to top 10 richest people category- 2020 has certainly been the year for Tesla and its CEO Elon Musk – making them among the most precious in the world.
Tesla’s stock has been on the gaining frenzied, smashing records by rallying nearly 550% this year, pushing its marketplace over the $500 billion marks. Not just simply that, as keeping with Bloomberg Billionaire Index, Elon Musk has added $100.3 billion to his net worth this year that helped him surpass Bill Gates to emerge as the second-richest man in the world.
The company that made Elon Musk the 2nd richest man- Tesla
Tesla, or Tesla Motors, was not the active idea of Musk. He financed the Series A funding to become the Chairman of the company. He estimated Tesla Motors as an energy-clean technology company and an unbiased automaker. In contrast to numerous regular producers, Tesla works as a real framework maker, manufacturing power-train components for different automakers. Tesla has had partnerships with different auto manufacturers, including Daimler and Toyota. It partners with Panasonic in the R&D and production of batteries and solar panels.
Investors Choice
The stock has been on the buying spree after the S&P Dow Jones indices announced Tesla’s inclusion within the S&P 500 index, which might make it certainly considered one of the 10 most valuable companies within the index. Currently, it trades within the Nasdaq index. The electric auto maker's share price commenced the year at $418 per share keeping with proportion, and on Dec. 7, it fetched more than $625 per share and it had already received traders’ interest while it introduced its five-for-one (5:1) stock split plan in August to make its stocks greater less expensive.
*Stock split increases the wide variety of stocks as the prevailing stocks split in the ratio announced by the companies. The price per share decreases, making it affordable for traders.
On the earnings front, much less than a year after Tesla's stock hit a low of $211 in August 2019, the company's shares have soared to lovely new heights, hitting a height of $1,675 on July 20.
Tesla beat expediencies by revealing its fourth-consecutive quarter of profits. It additionally set a record of strong deliveries because it delivered 139,300 vehicles during the September quarter, driven by its new factory in China.
EV: The Future
A big part of Tesla’s gain is its sustainably profitable business model as the carmaker is known to produce a wide range of electric vehicles (EV) and electric trucks.
Even though many automakers are now edging towards grabbing the share of the EV market as EVs are believed to dominate the auto industry, Tesla has been successful in being among the first to transit to sustainable energy with electric cars, solar and renewable energy.
Biden Presidency
An essential policy associated favorable factor for Tesla as well as other U.S. electric-powered automobile makers is Joe Biden’s ‘Build Back Better’ policy goals for clean energy and manufacturing. Some of the goals include building out electric vehicle charging infrastructure by adding at least 500,000 more charging stations in the United States and creating 1 million job opportunities in the U.S. auto industry. Therefore, Biden’s policy announcements in the sector and how much of these stated goals pass through under his administration will determine greater for the EVs future.
Tesla’s Pillars of Growth for The Next 20 Years:
Tesla’s pillar of growth for the subsequent two decades might be batteries, however, there may be multiple pillars. That’s the beauty of Tesla — this is a company that has an adverse effect on reshaping many industries of around 10million of people.
Tesla’s pillars are:
Batteries
Solar based
In-house services consisting of insurance
Autopilot and FSD (Full Self Driving)
Building manufacturing plants
Elon Musk’s Twitter interactions with clients.
The last one is incorporated because of the reality Elon Musk is broadly perceived for taking note of his clients and supporters. He took the guidance of numerous while planning the Cybertruck and brought up that a significant number of the thoughts that were executed into the Cybertruck came from Twitter.
Along with the fast adventure of Tesla, the fulfillment tale of his space venture has worked in Musk’s favor which has made him the second richest in the world. Elon Musk’s SpaceX has been licensed because the first private company with an operational device to launch astronauts to-and-from the area.
Will all these achievements, potential, and growth path assisted Musk to lead to emerging as the world’s richest person and Tesla to surpass Apple as the most valuable company in the coming years?
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