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The sixth largest company in the United States! Tesla's market value exceeds that of Warren Buffett's company

via:博客园     time:2020/11/28 12:10:56     readed:175

On Friday, Nov.28, local time, Tesla surpassed Berkshire



Tesla shares rose $11.76 to $585.76, or 2.05 percent, on the Nasdaq Stock Exchange on Friday. By the close of the day, Tesla had a market value of $55.5242 billion, compared with Berkshire, according to FactSet data

At present, the top five companies in the U.S. stock market value are apple, Microsoft, Amazon, Google parent company, Facebook, with market capitalization of $1.98 trillion, 1.63 trillion, 1.60 trillion, 1.21 trillion and 790 billion US dollars respectively.

Tesla shares will be included in the S & P 500 next month. Since the announcement, Tesla shares have risen sharply. So far this year, Tesla's share price has risen 600%, while the index is only 13%.

Elon, the company's founder and chief executive, as Tesla's share price soared

Related Reading:

[Buffett: Musk does something great, but he won't invest in Tesla]

Warren, Berkshire Hathaway CEO, May 3

Mr. Buffett is one of the most successful and respected investors in history, while Tesla, an electric car maker, is one of the most controversial investment targets on Wall Street.


When asked about Musk, Buffett was cautious. He said:

Buffett went on to say he joined Musk a few years ago

But when it comes to whether Mr. Buffett will invest in Tesla shares, his answer is simple and clear.

It's no surprise that Mr. Buffett doesn't like Tesla, because he's always taken a value investment approach and avoided high P / E and high growth stocks. Given that Mr. Buffett has never invested in stocks such as alphabe or Netflix, avoiding Tesla is not an example.

Then, on May 7, Musk made it clear,

This may be Musk's anger at Buffett's stated intention not to invest in Tesla, or his right-hand man said Musk

Musk confessed on the show,

Asked about his recent decision to sell most of his assets at the Twitter, mr. rogen said:

Related reading:

[Musk's net assets surpass gates to become the second richest person in the world]

Elon, chief executive of Tesla, an electric car maker, on Monday, local time


The 49 year old Musk's net worth surged $7.2 billion to $127.9 billion on Monday, driven by another surge in Tesla's share price. This year, Musk's net worth has increased by $100.3 billion, making him the richest person in the world with the highest wealth growth on the index. In January, musk ranked only 35th.

Musk's net assets soared mainly due to the soaring share price of Tesla, whose market value is close to $500 billion. About three-quarters of Musk's net assets are Tesla shares, while SpaceX, which is not listed, accounts for only a small part.

By Amazon founder Jeff in 2017

Musk and Gates occasionally quarrel, he used to laugh at the Twitter of Gates on the electric truck

For the world's wealthiest people, 2020 will make them a fortune. Despite the severe impact of the outbreak and massive layoffs on ordinary people around the world, the net worth of members on the index has risen by 23%, or $1.3 trillion, since the beginning of the year. (small)

[Second and third richest man in the world, Gates and Musk

From electric cars to super-high-speed rail, from rockets to satellites, from solar roofs to Mars, from brain-machine interfaces to starships

According to Bloomberg Bloomberg Rich Index

This is due to the recent surge in Tesla's share price: after several consecutive days of rising, the company's share price closed at $555, with a market value of $526.4 billion, breaking through the $500 billion mark for the first time. Three quarters of Musk's net worth is made up of Tesla shares.

However, the doubts surrounding musk never stop. How big is the bubble behind Tesla and the hot electric field behind him? Is the status of the 100 billion rich boosted by high technology, or is it a flash in the pan exaggerated by capital? And what kind of karma is there between the new generation of rich represented by Bezos and musk?

The gap between adventurers and philanthropists

In fact, Gates has been the richest person in the world for more than two hundred billion dollars in 2017. Now, musk has taken his place.

But without his focus on Philanthropy in recent years, Gates has a net worth of more than $129 billion: since 2006, he has donated more than $27 billion to his charity foundation.

The adventurer musk and philanthropist Bill Gates have a lot of friction in different fields.

Earlier this year, the two expressed different views on the new crown. In an interview, Musk said:

Gates, however, as early as the beginning of the epidemic called for people to pay attention to the epidemic, and invested huge funds to develop vaccines. He thinks Musk's comments on the outbreak

Gates thinks Tesla's electric truck has no future, Musk thinks Microsoft's investment in artificial intelligence platform is OpenAI for profit, and comments directly on Bill Gates

Since the outbreak of the new epidemic at the beginning of this year, although many ordinary people in the world are facing the plight of reduced income and being laid off, the net assets of the 500 richest people in the world, as measured by the Bloomberg rich index, have increased by 23%, reaching 13 trillion US dollars.


The value of net assets of the world's top 10 richest people on the list of the world's richest people by the end of November 25, US Eastern time. Source: Bloomberg

How much is the bubble under Tesla 500 billion market value?

Tesla shares have risen nearly 28% since they were announced on Monday to be included in the S & P 500 after December 21. Goldman pointed out that given that many of the large cap funds do not yet own their shares, they will need to buy $8 billion of shares if they later hold Tesla with benchmark weights.

Tesla's big rise is also related to the market's expectation that Biden's government will benefit the new energy vehicle sector after taking office, including Weilai, workhorse, Nikola, Lordstown motors, Xiaopeng, ideal automobile, Ayro and other new energy vehicle companies have also increased to varying degrees in the near future.

Shares have soared 500% this year, peaking above $500 billion

Valuation is always a hot topic. Take a look at some data: the median P / E ratio of S & P 500 is 20.89, and that of Tesla is 113; in terms of enterprise value multiple, only six companies in S & P 500 are higher than 49.51 times of Tesla. This index is a widely used company valuation index. The enterprise value (EV) is divided by the profit before tax, interest, depreciation and amortization (EBITDA). Its multiple is higher than the industry average or historical level. Generally speaking, it indicates that the company is overvalued, while the low indicates that it is undervalued. Different industries or sectors have different valuation levels.


Photo by Bram Van Oost on Unsplash

How Tesla proves these price multiples will be a difficult problem. Even citing the profit figures given by the most bullish analysts

Robin, Harvard Business School

The market's high expectations for Tesla are based on a series of target lists, including being included in the S & P 500 index, sustained profitability and high production capacity, battery technology innovation and the launch of new electric vehicles. If there is an imperfect performance in one link, the emotional market will give very timely feedback.

On September 23, the day Tesla postponed battery day for nearly half a year, the company's share price plummeted by more than 10%, because it had hinted that there was no progress in many battery technologies, including batteries with a service life of one million miles, and dry electrode technology, which can greatly increase the energy density of cells.

Although Tesla's long-term value and potential can not be denied, in the short term, Tesla must face the throes of a bubble burst. Goldman Sachs points out that start-ups in the field of electric vehicles tend to have a good rise on the first day of listing, but then perform worse than the general market, because the transactions are only focused on the company's concept heat, and once it dissipates, investors begin to leave the market.

Nikola, once seen as a challenger to Tesla, has seen its share price plummet a few months after it went public, as one of its main electric trucks has been delayed.

But for the first time in three years

In Musk's view, Tesla has never been a traditional car manufacturer, but

The two rich are fighting

Ranked among

Unlike Mr. Gates and Mr. Buffett, the two new tycoons are staged

According to business insider, the debate between the two dates back to 2004, when they had dinner together to discuss their plans for a recoverable rocket, but the conversation was not smooth. After that, they had their own business. Until 2013, they had a dispute over the lease of NASA's rocket launcher.


Photo by SpaceX on Unsplash

At the time, SpaceX tried to obtain exclusive access to NASA's rocket launch pad, but Bezos offered to transform it into

In recent years, the contradiction between the two has gradually become open, and even developed into a fight on Twitter. Musk has repeatedly publicly called Bezos

However, the bickering is back to bickering, and the two have never stopped in the cause of space exploration. Recently, both companies have submitted to NASA the design of a lunar lander to achieve the mission of returning humans to the moon by 2024.

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