Tesla is a miracle. And it was definitely one of the most amazing stories of 2020. This Silicon Valley company basically started with a man assembling batteries in his back yard after he announced his car production and delivery dates in the second quarter of Year has succeeded in displacing Toyota as the most valuable car manufacturer in the world. The value of Tesla shares on Wall Street rose 4% last Wednesday, July 1, increasing market capitalization to nearly $ 201 billion. Tesla is worth twice as much as Volkswagen, four times more than Mercedes-Benz and eight times more than Ford. It is also worth more than Disney and Coca-Cola. And yes, it’s bigger than Bitcoin.
This was an incredible year for this company, led by the charismatic Elon Musk. ANDThe share price in July 2019 was approximately $ 250. Today, 12 months later and amid a painful global crisis, the stock is trading at just over $ 1,200. It’s reporting season, and while others struggle with their numbers, Tesla celebrates and shows them off with pride. Despite the setbacks associated with corona viruses, Tesla delivered more than 90,000 vehicles in the last quarter. The company achieved more production and more sales. After years of tireless work, the dream comes true. We can already see the cheese on the toast.
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If we now analyze the numbers of the competition, we would see that actually Tesla is still a relatively small company. L.The sales of Toyota, Volkswagen or BMW are higher. That said, his current assessment seems absurd at first glance because it is not reflected in the books. Then pIt would be strange to say that this price we see today is essentially the product of speculation and not based on strong fundamentals.
In fact, that would not be a crazy analysis. In fact, it is very reasonable. If someone decided to buy the entire company today to liquidate and sell part of it, they wouldn’t even get the amount paid back in dreams. However, Tesla is worth what it’s worth, and most analysts still don’t say anything about overvaluation. The consensus on Wall Street is that Tesla is a stock to hold. In other words, the current rating is considered more or less fair. It is not a piece of jewelry, but it is also not a robbery. Strange but true.
Why is Tesla worth so much? Companies like Tesla are not measured like companies like Toyota or Coca-Cola. Warren Buffett’s baseline is not normally valued. Because Tesla is not a company with value, but with growth. So it’s basically valued as a startup. Its value is not in your wealth, income, or current size. Its value lies in its future. That said, today’s price isn’t really today’s price. It’s actually the price of the future. In this sense, Tesla itself is largely speculation. But not in the derogatory sense of this controversial word. Idea or thought unfounded and shaped without worrying about a real basis. “Speculation”: from the Latin speculari, which means “looking from above, observing from a watchtower, observing and later spying on”. I mean the latter. Future vision.
Tesla investors buy today to eat the cake tomorrow. But it’s not a blind bet. Everything is based on a hypothesis. However, How did dreamers in a garage with the help of a billionaire from Silicon Valley manage to become the world’s most valuable automaker in less than 20 years? This task was considered simply impossible. No one has succeeded since Chrysler’s founding in 1925. I don’t just mean to be the first. That would take too much. I mean, just survive. Small projects, yes. But a car company that really competes with the big boys, no.
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We can attribute this success to three things: First, its technology. Second, your business strategy. And thirdly, to his charismatic CEO, who is a snake charmer and miracle maker. The product is good and the technology is superior. The jewel in his arsenal is the battery. And the electric motor. In fact, Tesla’s technology is so good that Tesla is a supplier to its competition. That tells us a lot. The batteries. The motors. The software. The parts. And his ability to put everything together to do magic. This is Tesla’s secret sauce. Toyota can build a great car, but it doesn’t have the secret sauce.
Now the strategy. Tesla isn’t really an automaker competing with Toyota, Ford, or Volkswagen. It is actually a cleantech company. And it is the undisputed leader of an emerging sector. We all know that cleantech is the future and Tesla is at the forefront of this future. Tesla doesn’t compete with anyone. Tesla created (practically) a new market and becomes a monopoly within that market. Tesla receives the biggest checks in tomorrow’s green world.
And of course there is the tale of Tesla and the charming hero. It helps a lot. Our real-world Tony Stark. The character that makes us dream of an extraordinary future with its space rockets, clean energy, the colonization of Mars, underground tunnels, robots and artificial intelligence. The world falls in love with Elon Musk’s vision. And dreams sell. Despite its eccentricity and appetite for large risks, the market trusts Elon Musk’s capabilities. People think that he will make the impossible possible. The supersonic, Star Trek, Star Wars, Isaac Asimov and all that. And that’s worth more than $ 200 billion in the minds of many.
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Bitcoin is a different game. The comparison is stupid because we are talking about very different things. A detailed analysis would be too long and tedious for such an article. But you could sum it up as follows: Tesla is worth more than Bitcoin because it currently has more buyers and fewer sellers. That means there is more money in Tesla than in Bitcoin. In general, the Tesla community is smaller in number than the Bitcoin community, but the Tesla community is wealthier. Institutions and mutual funds hold more than half of Tesla’s shares. That said, Tesla has managed to conquer big capitals.
Bitcoin is great for individuals. Young people, venture capitalists, libertarians, speculators, retailers. We have not yet been able to attract large capitals. We still don’t build enough trust. Well, maybe because of our immaturity. Because of the narrative. Because of the lack of a coherent and unified plan. Due to technical restrictions. I dont know. SuddenlyOur “shortcomings” compared to Tesla are largely the product of our decentralized model. And whether we like it or not, decentralization brings chaos and disorder. Of course, decentralization is part of the magic of Bitcoin. So? What do we do?
Well, the moral here could be that decentralization doesn’t necessarily mean lack of organization or coordination. We always live in a wrong dilemma about decentralization. On the one hand, it is assumed that every organization is “communism” and that a group plan is always oppression. On the other hand, it is believed that decentralization is a headless hen that runs madly through the barn. Is decentralized planning possible? Could we be free and fly together at the same time? Bitcoin with a sensible and coordinated plan would be worth a hundred times Tesla.