Tesla- what once was an unknown company 5-6 years ago is now one of the world’s largest companies. The electric vehicle giant has been one of the hottest topics of discussion all over the world as its stock saw a 700% surge in the last year. Yes, 700%. That is enough to describe how well the company has been doing. But who and what is the reason behind the huge success of Tesla?
Undoubtedly, when I say Tesla, there is one person that comes into your mind- Elon Musk. He is the reason behind the positive transition. Being an admirer of Elon Musk, I have followed him closely over the years. Like any businessman, he has seen huge ups and downs. At the start of 2019, a plethora of people questioned Tesla’s place in the market. They were skeptical about the consumer demand for electric vehicles, about the charging stations. Many even wrote them off but that didn’t put Elon Musk or Tesla down. They bounced back to become the fifth most valuable company on Wall Street with a market capitalization of around $830 billion leaving behind the likes of Facebook.
However, I was astonished to learn that Tesla managed to sell only around 500,000 cars last year. That sounds quite low for a business that’s nearing a trillion-dollar market capitalization. So what is making Tesla such a huge company? It is the mindset of people. The people believe what Tesla is selling will be one of the most important products in the future and it can. They think Tesla will grow rapidly in the coming years as the electric vehicle industry can see a boom. Some predictions state Tesla will become the world’s no.1 automaker 10-20 years down the line. Tesla themselves have set global expansion as their primary objective for 2021 with them eyeing countries like India. But what I want people to understand is that the current market value of Tesla is not determined by the past or current performance but the future. This is therefore food for thought. Are investors today valuing companies based only on what they can conjure in the future? Well, Tesla sure is. And that is one of the reasons Elon Musk is a role model for many. He knows what the people’s mindset is. His companies are for the future. SpaceX is also an example. He is a person who thinks as if he is 10 years in the future and one can see how much that is making him earn. It is just one of those qualities that many lack today.
In conclusion, the electric vehicle industry is in the stages of inception and Tesla is doing so well. My question is, if this is the case now, how will Tesla do 5-10 years down the line? The pace with which Tesla is growing, I don’t see them stopping anytime soon. They truly are ones for the future. Therefore, for those contemplating whether to invest in Tesla, I say go for it!
