Tesla has become a world reference in the field of electric cars.
The firm and its whimsical and visionary CEO Elon Musk have become a symbol of reducing CO2 emissions from the automotive sector.
The automaker currently produces more than 1.37 million electric vehicles per year, digging a big hole with its rivals. Profitable with margins that make its competitors pale with envy.
Its market capitalization reached $1 trillion in 2021 and is currently down to about $390 billion. No other car group comes close. Toyota (TM) – Get a Free ReportThe market value of the world’s largest automobile group by production volume is 191 billion dollars, and Volkswagen (VWAGY) – Get a Free Report the market value is about 83 billion dollars. Ford (F) – Get a Free Report and General Motors (GM) – Get a Free Report have market capitalizations of $51 billion and $52 billion, respectively.
GM and Chrysler went bankrupt
Tesla (TSLA) – Get a Free Report has four auto manufacturing plants — Fremont, Calif.; Austin, Texas; Shanghai and fourth near Berlin. The company may announce the names of the places where the new cars will be assembled in the coming weeks.
Tesla currently markets five models: the Model 3 entry-level sedan, the Model Y SUV/crossover, the Model S luxury sedan, the Model X luxury SUV/crossover, and the Tesla Semi. A new model, the Cybertruck, should be added to this growing list this year.
What many forget is that 14 years ago Tesla would have simply disappeared. This was in 2009, in the middle of the financial crisis. Six years after Tesla’s founding, the automaker and its co-founder Musk have yet to produce any of the cars currently marketed by the company.
The automaker produced only a limited number of Roadster sports cars. The horizon was bleak for the all-American car. Detroit’s Big Three were desperate. Chrysler and GM went bankrupt that year. Ford was the only one not to file for bankruptcy.
Tesla had no choice but to pull down the curtain on the startup at that time, because everything was against the company. The climate was not conducive to electric cars. Consumers affected by the crisis thought of only one thing: to save while investors avoided all risky assets.
But a savior emerged: Daimler, the parent company of Mercedes-Benz. This was announced by Musk on Twitter.
“I wonder what would have happened in 2009 if the Fed had raised rates instead of lowering them,” the billionaire wrote on Twitter on January 13.
Daimler “saved Tesla”
“Lucky Tesla found an investor then,” one Twitter user commented.
“It’s true that the Daimler investment in 2009 actually saved Tesla,” Musk said.
On May 18, 2009, Tesla and Daimler (DMLRY) It announced a strategic partnership, including the acquisition of a stake in the American firm by the German automaker.
Mercedes-Benz’s parent company bought about 10 percent of Tesla, and the two automakers agreed in a press release to collaborate on battery systems, electric drive systems and individual vehicle projects.
Dr. Thomas Weber, Member of the Management Board of Daimler AG, responsible for Group Research and Mercedes-Benz Vehicle Development, said at the time: “Our strategic partnership is an important step to accelerate the commercialization of electric powertrains globally.”
“Daimler choosing to invest and partner with Tesla is an honor and a strong endorsement of our technology,” Musk said. “We look forward to strategic collaboration in a number of areas, including leveraging Daimler’s engineering, manufacturing and supply chain expertise. This will accelerate the production of the Tesla Model S and ensure that it is a superior vehicle on all levels.”
This alliance confirmed Musk’s vision and Tesla’s strategy. Daimler realized that the future of the automobile was in electric vehicles and that the key to success was getting to market quickly. Since Tesla is already competent, joining forces with Musk’s group will dramatically reduce the research and development time required before Daimler’s first 100% electric cars go into production.
Financial terms of the deal were not disclosed, but multiple articles reported it to be $50 million. Daimler sold its Tesla stake in 2014 at a huge profit.
“Ironically, the company that made the first commercially viable internal combustion engine car saved the company that made the first commercially viable electric car!” Musk expired on January 13.