Nothing like a 700 percent increase last year to boost Tesla stock’s fortunes – and founder Elon Musk’s net worth – as ongoing stock market profits have pushed both to new highs.
Not only did Musk become the richest man in the world, but Tesla’s market value hit $ 820 billion on Friday. He pushed Facebook aside to move into the top 5 position where it now only ranks behind Apple, Microsoft, Amazon and Alphabet.
Although Tesla has only been included in the S&P 500 benchmark index for three weeks, analysts say the company’s growth outlook remains positive as it builds new facilities to increase production and meet demand.
“We believe tech / retail investors view Tesla as two separate tech companies,” according to a research report from Evercore ISI. “One that is the market leader in electric vehicles and another that offers driverless vehicle technology, stationary solar storage, battery and powertrain technologies and others.”
In addition, expectations that President-elect Joe Biden’s future administration will drive new climate protection initiatives and stricter emissions regulations reinforce the hope that Tesla’s share price will not go up in smoke.
Electric vehicles in the EU
Speaking of smoke …
Thanks to an “enormous increase” in sales of electric vehicles in the second half of the year, the German Daimler – the world’s largest luxury car manufacturer – was able to meet its annual fleet-wide emissions requirements and avoid fines running into the millions. Mercedes delivered just under 160,000 plug-in hybrid and fully electric vehicles in 2020, with the fourth quarter accounting for around half of these deliveries, Daimler boss Ola Kallenius told reporters on Thursday (January 7).
The surge in demand for electric vehicles came at a time when total vehicle sales in Europe fell to a 35-year low, falling below the 11 million vehicle mark for the first time since 1985. Daimler also said it had sold 30,000 of its smart electric mini cars. Similarly, Benz rival BMW saw strong demand for electric vehicles and hybrids as well, meeting its emissions target and avoiding penalties.
After Tesla sold its 200,000th electric vehicle a few years ago, it was no longer eligible for a $ 7,500 tax credit, but many of its competitors are still. Although Elektrek, an electric vehicle magazine, says that figuring out how much the government is willing to pay you to buy and drive a zero-emission vehicle in some cases is a little computationally intensive, it is definitely worth the time and effort .
Aside from the cap on production quota (which Tesla almost hit in the fourth quarter of last year alone), personal income and tax rates, plus additional government incentive programs that some jurisdictions offer in addition to the state, have other implications for EV rebates.
For example, if an electric vehicle qualifies for a $ 7,500 credit but the owner owes only $ 3,000 in federal taxes, Electrek says Unre Sam will only erase the amounts owed and no longer without carrying forward unused amounts . There is also the wildcard of leasing, which gives the credit to the actual owner of the vehicle – who may or may not pocket the money themselves.
Definitely get them while they are still available because as EV ownership rates rise – and federal and state budget deficits rise – it becomes increasingly difficult to subsidize wealthy car buyers who buy $ 50, 60, or even $ 90,000 for Spend a new car to defend and not sit well with a growing number of lawmakers.
It is clear that enthusiasm for and confidence in the future growth and viability of alternative drive cars or trucks is growing, with more than 5.5 million hybrids and nearly two million electric vehicles currently on the road in the US of new vehicle technology it was strong and still only accounts for about 2 percent of the country’s 270 million vehicles.
While companies like Tesla are expanding their production capacities and many dealers have enthusiastically embraced this changing megatrend in the industry, not all are on board.
For example, nearly one in five Cadillac dealers has turned down a costly EV upgrade mandate from headquarters that requires things like redesigned showrooms, new charging stations, and service training to ensure everyone is ready for the future. In some cases, merchants have agreed to a franchise buyout of $ 500,000 instead of the estimated $ 200,000 upgrade.
Similar reports say that around 40 percent of 1,700 Hummer dealers and around 30 percent of 3,000 Ford dealers have not yet signed up for EV certification.
The current head of the industry’s top trading organization said that traders always want to sell whatever people want to buy, and the so-called “mausoleum mandates” are inconsistent with the industry’s rapid shift to digital sales.
“[The automakers] I need to understand that COVID hyperspeed this digital world, ”said Rhett Ricart, chairman of the National Auto Dealers Association. “We tell [the manufacturers] that people don’t care how big your showroom is, that a big showroom doesn’t reflect the quality of the car or the dealership. It is not a reflection of anything other than a large exhibition space. “
Read more about Tesla:
NEW PYMNTS DATA: THE SUBSCRIPTION BUNDLING REPORT DECEMBER 2020
Over: The PYMNTS Subscription Bundling Report polled a census-balanced panel of 2,962 U.S. consumers to determine how their attitudes toward bundled subscription services have changed during the pandemic, particularly those offered by companies in the streaming sector. The report also examines how knowing that a COVID-19 vaccine will soon be available in the U.S. could affect their perceptions.