The Sun King’s court at Versailles was a snake’s nest, as movies and TV series love to depict this wonderful period when French art dominated Europe.
Power games, tricks, and other intrigues animate daily life at the court of Louis XIV. When he is not in order to win the king’s favor, the courtiers plot to overthrow him.
Now imagine that Versailles is the stock market.
apple (AAPL) – Get the Apple Inc. report.which currently has a market capitalization of about $2.6 trillion, as of this writing, is clearly going to be the king, so the rest of the companies make up the circle of the courtiers, who don’t reside in the same boat.
As under Louis XIV, there is a hierarchy among courtiers.
Microsoft (MSFT) – Get a Microsoft report ($2.09 trillion in market capitalization) Alphabet (The Google) – Get the Alphabet Inc. report. from first class ($1.67 trillion in market value), Amazon (AMZN) – Get an Amazon.com, Inc. report. ($1.39 trillion in market capitalization) and Tesla (TSLA) – Get a Tesla Inc . report ($831.5 million in market value) forms the first circle.
Their peculiarity is that they are very ambitious and hope to overthrow King Apple. But the most rebellious is Tesla, which has never hidden its criticism of Apple. Until recently, Tesla’s chief designer said Apple was getting too boring.
“Oh my gosh, I’ve heard about Apple products now like there’s nothing to look forward to. Right!” Franz von Holzhausen, Tesla’s chief designer, told Spike Car Radio. “I feel like it’s just a continuation. It’s just kind of a slight improvement in the same thing. Inspiringly, it’s been hard to get, you know, super motivated for what they’re doing.”
It would therefore be an understatement to say that Tesla sees himself as the new king. Coronation possible for manufacturers of advanced electric cars. Some, like investor Gary Black, say Tesla’s market value could reach $4 trillion by 2030.
Black and his company, The Future Fund, recently published their accounts. These are very optimistic and count on a massive adoption of electric vehicles around the world.
Black’s estimate is based on the following assumptions: Electric cars will be more popular by 2030, with a penetration rate of 60%. Tesla, which is currently at the fore in this booming market, will increase its leadership, with a market share that will reach 21%.
Black expects the production and delivery of the company led by Elon Musk to explode. Global sales of light electric vehicles should reach 85 million units annually, including 10 million units sold by Tesla.
Tesla’s operating margin, which was 14.1% in 2021, will jump to 26.1% in 2030 thanks to improvement in battery-related technologies in particular. The automaker’s adjusted earnings per share (EPS) will rise from $6.79 in 2021 to $100 in less than 10 years, Black calculates.
Black posted to his followers on Twitter: “When the electric vehicle adoption rate reaches 60%, $TSLA with a 20% EV share will be offered as a safe haven as $AAPL.”
Go to follow
Tesla has just received permission to start production at its massive plant in Berlin, which will soon begin making cars to serve the European market. The giant Austin plant should be operating at full capacity soon, too.
“The Berlin plant has established a major bridgehead for Tesla in Europe with the potential to expand this plant to produce approximately 500,000 vehicles per year with the front and center Y Model over the next 12 to 18 months,” Wedbush analyst Daniel Ives wrote in a recent research note. .
Ives added that the Berlin Giga factory would help solve Tesla’s production bottlenecks globally.
Black gives other numbers such as assuming that production of electric cars will rise from 4.6 million in 2021 to 51 million in 2030.
It must be said that most of the car manufacturers – General Motors (GM) – Get the General Motors reportstronghold (F) – Get a Ford Motor Company reportVolkswagen (VWAGY) – Get a Volkswagen AG reportHonda (Hamad Medical Corporation) – Obtain the report of Honda Motor Co., Ltd.stellants (STLA) – Get a Stellantis NV . reportToyota (TM) – Get the Toyota Motor Corp. reportVolvo (volv) Rivian (countryside) – Get a report from Rivian Automotive, Inc. from first classLucid (LCID) – Get a Lucid Group, Inc. report.Nicola (NKLA) – Get Nikola’s reportIt also has very aggressive production targets.
General Motors and Ford, for example, are talking about producing 2 million units per year from 2025 for the first and 2026 for the second. The two groups produced just 50,000 electric cars in 2021.
Black’s predictions sparked a lot of comments on social media. On the other hand, they seemed to be well received by some, especially Tesla fans. But other users have pointed out that Apple’s possible access to the car could spoil these sweet plans.
One user praised “Hey Gary, you’re doing a great job and you’re the voice of reason in the TSLA community. No noise.”
Another user added: “Until another company makes 1/10 of what TSLA dollars do, the idea of them getting only 20% is laughable.”
But others have argued that the exorbitant prices for Tesla cars would be a drag on the company. Tesla currently markets four models – Model S, Model X, Model Y and Model 3 – the base price for the Model 3, the entry-level car is $40,690.
“Only one problem: How many people could buy a $50,000 car?” asked one user.
“AAPL US Dollars is working on a car, and it has consistently proven to be the best supply chain company on the planet. How many TSLA buyers are likely to jump ship? Maybe I will…”
Black isn’t the first investor to see Tesla’s market capitalization rise to $4 trillion.
In March 2020, Cathie Woods’ Ark Invest predicted that there was a more than 25% chance that Tesla would be worth more than $4 trillion by 2025.
#Tesla #worth #trillion