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With a market value of more than $150 billion, Tesla will challenge Toyota?

via:博客园     time:2020/5/25 20:16:41     readed:66

Reporter Yuan Ouyang (Internship)

Under the influence of the new crown epidemic, many multinational vehicle enterprises are facing challenges such as factory shutdown, supply chain disruption, and pressure on the sales side. Reflected in the capital market, most of their market value performance is not satisfactory.

According to the incomplete statistics of the reporter of the daily economic news, most of the 16 international large-scale automobile enterprises have lost their market value to varying degrees. Among them, the market value of TTM, Nissan and Ford Motor (f) has cut back, with a decline of 59.39%, 50.86% and 48.4% respectively in the past year.

However, there are surprises in addition to the overall downturn of the industry. According to the data, Tesla's latest market value is more than 150 billion US dollars, with a growth rate of 285.55% in the past year, becoming a listed vehicle company whose market value is second only to Toyota Motor (TM). It is understood that the current market value of Toyota is US $166.066 billion.


Market value of only three car companies rose

According to the data, in the list of market value, only Toyota, Tesla and Ferrari have seen the market value of 16 listed car companies rise, while the market value of other car companies has declined, while Tata, Nissan and Ford are in the top three.


Photo source: Daily Economic News

According to the first quarter report of 2020 released by Ford Motor, the company's operating revenue is US $34.3 billion, and its adjusted profit before tax is US $632 million, down 14.9% year on year. It was also the first time since the great depression in April 2009 that Ford had a quarterly net loss.

Ford's CFO Tim Stone said in its first quarter results that the company expects adjusted EBIT losses in the second quarter to exceed $5 billion due to significant declines in vehicle sales in various regions. At the same time, Ford's auto driving service, which had attracted much attention before, was also delayed to go online in 2022.


Photo source: by sun Tongtong

Nissan, which lost more than half of its market value, began to lay off workers and extend its production plan in April. On April 7, Nissan announced that about 10000 employees had been laid off at its US plant. Nissan later announced that it would cut about 6000 jobs at its UK plant and nearly 3000 at its Barcelona plant in Spain. This means that in the three regions alone, Nissan has cut nearly 20000 jobs.

At present, Nissan's market value has also reached a new low in nearly a decade. In addition to the impact of the epidemic, Nissan's overall weak sales in the global market is also one of the reasons. Data shows that in 2019, Nissan's global sales volume was 5.1762 million vehicles, down 8.4% year on year. In addition, affected by the ghorn incident, the Renault Nissan Mitsubishi cooperation alliance also fell into a crisis of trust, which made Nissan even worse.

Peugeot Citroen Group (hereinafter referred to as PSA), as a representative of legal system brands, also suffered heavy losses. Although the company's merger with Fiat Chrysler (FCA) in late 2019 boosted its share price in the short term, its market value still fell by more than 40% in the past year, lagging behind Nissan and Suzuki (7269).

According to the data released by PSA, the company's revenue in the first quarter fell 15.6% to 15.18 billion euros from 17.98 billion euros in the same period of last year; the total sales volume of automobiles in the first quarter was 627000 units, down 29.2% year on year. Not only that, PSA's planned dividend payout was also stranded due to the impact of the epidemic. On May 14, PSA and FCA announced that they would not pay dividends to shareholders to save 1.1 billion euros of cash to survive the outbreak.


Source: Daily Economic News

Italy is the worst hit area of the epidemic, but Ferrari, located in the region, seems to have passed the crisis smoothly. Its market value has not only not shrunk, but also surpassed Daimler, general motors and other large vehicle companies. It is reported that Ferrari closed its production plant in March this year, but its total vehicle shipments increased by 5% to 2738.

In this regard, analysts believe that Ferrari has a high brand value and high profit margin, which is more successful than other car companies in dealing with the epidemic crisis. In addition, thanks to the recognition of Ferrari models in the high-end sports car market, the price of Ferrari vehicles is between 215000-1 million US dollars, and the single car profit margin can be maintained at about 24%, while that of traditional automobile manufacturers is often less than 5%.


Toyota encounters a strong enemy

This year, Tesla's performance in the capital market has been amazing. By the end of May 18, EDT, Tesla had a market value of 150.823 billion US dollars, which exceeded the total market value of the three traditional U.S. automakers, general motors, Ford and FCA. Not only that, Tesla, with a market value of 100 billion US dollars, has overtaken Volkswagen, ranking second in the list of listed car companies, second only to Toyota.

Although affected by the U.S. stock circuit breaker, Tesla's share price once fell to $361 per share, but with the recent stock price continues to rise, the gap between Tesla and Toyota Motor is gradually narrowing. Currently, the total market value of Toyota is about US $166.066 billion, while that of Tesla is about US $150.823 billion. The gap between the two is only US $15 billion.

Tesla's latest financial report for the first quarter of 2020 shows that its operating revenue in the first quarter is 5.985 billion US dollars, slightly higher than the market expectation of 5.9 billion yuan, with a year-on-year growth of 32%; the company's net profit is 16 million US dollars, better than the market expectation of 200 million US dollars in losses, while the company's loss in the same period last year is 700 million US dollars.


Photo source: taken by Liu Ling, a journalist

At the same time, Tesla achieved three consecutive quarters of profits for the first time, prior to the third and fourth quarters of 2019, the company's net profits were $143 million and $105 million respectively. Tesla said that despite the global business affected by the outbreak, the company still achieved its best performance in production and delivery in the first quarter of this year.

It is worth mentioning that although Tesla has performed well in the capital market, there are still many institutions and analysts who doubt Tesla, mainly focusing on Tesla's continuous money burning and subsequent vehicle delivery.

Morgan Stanley analyst Adam

Even Tesla CEO Musk wrote,


Photo source: visual China

In the face of Tesla's relentless pursuit, Toyota did not directly respond. However, Toyota President Akio Toyoda appointed his most valued son, taefu Toyoda, to work for the Toyota Research Institute advanced development company (tri-ad), a Tokyo based Toyota subsidiary that focuses on artificial intelligence and autonomous driving research and development. The move is widely regarded as Toyota's counterattack against Tesla in the field of automatic driving.

In the world's main battleground

Toyota is currently in the top position in terms of revenue and profit, but the crisis is hidden in the new battlefield of undercurrent. Toyota predicts that its operating profit will drop by 80% to 500 billion yen in 2020. In this context, will the market value ranking of Toyota and Tesla finally change? The industry will see.

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