Tesla is a company that manufactures electric vehicles, and it plans to launch a Semi-Truck on October 26 that will be a ''beast'' according to the CEO of the company, Elon Musk. Tesla's stock has also performed well, seeing an increase of more than 75 percent this year - impressive growth for a company according to a report by CNN Money. The market value of the vehicle manufacturer is $62 billion today, which means that Tesla is worth more than the Big Three: Ford, GM, and Fiat Chrysler.
The manufacturer of electric vehicles also surpasses Nissan, Honda, and Hyundai in market value, which is great news for a company that sells a small number of cars. Tesla launched the Model 3, which is also more affordable.
Tesla is a special company
The company of electric vehicles is different from the traditional ones because it's in a special segment of manufacturing, Tesla will have losses this year and also in 2018. Tesla is a mix of electric vehicles and alternative energy, it even owns SolarCity, a company that makes solar panels. Investors are convinced that in the future the company will increase its vehicle production to 20,000 units per month according to a report by Business Insider.
Tesla will not manufacture cars just for wealthy people, this gives the company a higher market value.
More affordable vehicles
Tesla manufactures the Model S and the Model X SUV whose prices begin at $68,000 and $79,500 respectively. These aren't cheap vehicles, but Tesla has also manufactured the Model 3 which starts at $35,000. The first models were shipped to the customers a few months ago. This model is one of the reasons that investors believe that the company will have a strong growth.
Growing sales
Tesla has a low volume of sales when compared with other traditional car companies, but they are increasing fast. The sales of the company will grow 70 percent this year to $12 billion, and then, grow 67 percent to $20 billion in 2018 according to a report by CNN Money.
If sales keep growing, the company could become profitable in the future.
Elon Musk has many goals
The CEO of Tesla has great goals in mind, he's also running the private rocket company SpaceX. Will he be able to manage both companies successfully in the long term? Remember that the high market value of Tesla is based on expectations, so the car company will have to make profits in the future if it still wants to have a stock that grows in an impressive way.