[ad_1]
The Tesla (TSLA) stock has been on the rise since the announcement of record earnings and the company's value is now higher than BMW's, with the company's stock falling after disappointing financial results.
California-based electric car maker's market capitalization now stands at more than $ 59 billion, while BMW's market capitalization dropped below $ 49 billion ($ 55 billion) yesterday after announcing a lower than expected profit for the last quarter.
Although it is difficult to directly compare Tesla with other car manufacturers, the company is much more than a car manufacturer because of the growth of its energy sector, the bulk of its turnover comes from currently in its automotive sector.
As a high-end car manufacturer, BMW is probably one of the best comparisons for Tesla.
However, even though Tesla's production has increased significantly this year, the two manufacturers are dealing with completely different volumes.
The BMW Group supplies more than 2 million vehicles a year, all brands combined, while Tesla currently produces around 360,000 units a year.
Nevertheless, investors are banking on the future of the company and are encouraged by its growth and profitability during the last quarter.
Model 3 is already disrupting the mid-size luxury sedan market, which is an important market for BMW.
BMW's mid-size sedan sales have declined in the United States, where Tesla delivers mainly model 3 this year.
The BMW 3 Series of the German manufacturer is considered one of the biggest losers in the rise of the model 3.
In the last quarter, Tesla announced that the popular BMW sedan was among the top 5 cars purchased by model 3 buyers.
Bernhard Kuhnt, President and CEO of BMW North America, admitted that "Tesla Model 3 is putting pressure on the market".
BMW has been slow to respond with more fully electric models. The BMW i3 is still the only 100% electric vehicle offered by the Bavarian brand, but several models are currently being planned.
Harald Krüger, CEO of the brand, presented the brand's latest plans for electric vehicles. The manufacturer plans to release 12 EV models by 2025.
Source link
