Tesla Expansion. How did the company’s value reach $ 1 trillion?

Tesla’s market value has risen to $ 1 trillion, media reported.

An independent expert on the auto industry Sergey Burgazliev expressed his opinion on the reasons for the success of the manufacturer of electric vehicles in an interview with Sputnik radio.

Tesla, a US electric vehicle manufacturer, hit a record high on Monday, pushing the company’s market capitalization to over a trillion dollars, Forbes reported.

The results of the auction were influenced by Tesla’s deal with the Hertz car rental service, which ordered 100 thousand cars from the company for rent, the newspaper writes.

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In an interview with Sputnik radio, an independent expert on the auto industry, Sergei Burgazliev, named another reason for the rise in the value of the electric car manufacturer’s shares.

“Plus, Tesla has invested in building a factory in Germany. The very fact that Tesla has invested in such a large enterprise suggests that the company is feeling stable. The company is confident in the demand for electric vehicles,” he said.

According to the expert, the value of Tesla shares will continue to grow due to the release of new models and “expansion” in Europe.

Tesla Expansion. How did the company's value reach $ 1 trillion?
Tesla Expansion. How did the company’s value reach $ 1 trillion?

“I think that Tesla is following its strategy quite strictly, according to which it should at least present a large pickup. I also think that they should have a fairly large crossover over time, it will be the size of a BMW X7 or a Cadillac Escalade. I think that there will be an expansion to Europe, “said Sergei Burgazliev.

However, he noted that the market capitalization of the company may not coincide with its real value.

“Market capitalization is a conditional concept, the real value of an asset is determined at the time of the transaction,” he concluded.

Source: BBC

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