Some financial analysts say that Tesla’s stock market value could rise sharply in the next few years. They even claim that Tesla could be worth more than 4 trillion dollars between 2025 and 2030, thanks to the opening of several Gigafactories in Germany and the United States, as well as regulations on heat engines. That’s more than Apple’s worth.
The market value of a company has several impacts. The most obvious is shareholder wealth. We discussed the subject with the fortune of Elon Musk, the richest man in the world. Financially, the boss of Tesla weighs far more than Jeff Bezos, in particular thanks to the surge in Tesla shares following the publication of the firm’s excellent annual results.
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The most important impact, however, is not to enrich the shareholders, but the ability to buy or be bought by another company. The higher the value, the more the stock is worth. And the easier it is to make a major acquisition. This is the case of Microsoft when the company proceeded to the merger with Activision-Blizzard, whose action had suffered a decline. It is thanks to a strong capitalization that a company can also invest in organic growth.
Tesla would be worth $4 trillion by 2030
Valuation is therefore essential. This is why it is the subject of forecasts by financial analysts. Several of them have spoken out in recent days about Tesla, explaining that the company could be worth more than 4 trillion dollars before the end of the decade. They do not all agree on the date on which Tesla could cross this symbolic threshold. All claim that the brand will exceed it before 2030. And the most optimistic think that it will happen in the next three years.
The craziest part isn’t the stratospheric number, but the gap between it and Tesla’s current value. Its capitalization has just exceeded 1000 billion only. As of this writing, Tesla is worth 1120 billion dollars and each share can be bought at around 1100 dollars. It is still far from reaching the capitalization of Apple which peaks at 2840 billion dollars.
Action plan: multiply shareholders, multiply factories
How could Tesla quadruple its capitalization by 2030 and overtake Apple? There are several levers. The first is the division of its share on the stock exchange : a current action would be worth several new ones. The goal: to make the purchase of the action more accessible, allowing more investors to bring in money. This operation is already scheduled for 2022.
The second lever is commercialof cours. Tesla will take full advantage of the heat engine laws that are being passed around the world, especially in Europe. By 2030, no more new thermal vehicles will be sold on the continent. Tesla is already positioned as the world leader in electric cars. Analysts predict the brand will monopolize up to 21% of the market.
For this, the firm is building manufacturing plants on both sides of the Atlantic. Among them, the Berlin Gigafactory announced in 2019. It has just been inaugurated, with a very interesting presentation video. This plant will have two objectives: make Teslas for Europein particular the Model Y which is starting to be delivered; and bring down the price of cars, the amount of which is increased by taxes and transport (they are now produced in Shanghai). The future therefore looks bright for Tesla. It remains to be seen how the more traditional brands will react.