Tesla has surprised many investors who believed that the company’s stock was likely to bounce back after some impressive gains.
Tesla has recently joined the S&P 500 as the largest company to do so in the history of the index.
The manufacturer of electric-powered vehicles is currently valued higher than many other of the top auto companies, including Toyota, Ford and Honda.
The growth of Tesla is partially due to the recognition of investors that the company had great potential and offered an excellent product.
Many people believed that more established companies would eventually move into the electric vehicle market and eclipse the efforts of Tesla and its CEO Elon Musk, but the opposite has occurred.
Despite efforts by Porsche, Audi and Jaguar, Tesla still remains dominant in this sector of the car industry.
Tesla is a very new company compared to its competitors. The styling of the company’s vehicles seems to belie this fact, garnering criticisms about the aesthetics of electric cars.
Skeptics have also expressed misgivings about Tesla’s strategy of pushing for self-driving cars, believing that this is unlikely to gain large acceptance of consumers who would be reticent to trust a self-driven machine to safeguard their lives.
Tesla claimed 80% of electronic vehicle (EV) sales in the US market in 2020, but detractors of the company point out that this only accounts for about 1% of overall vehicle industry sales.
However, given that the auto industry is moving rapidly into the electric-powered space, the growth of Tesla is understandable and likely to continue at a fast pace.Â
Part of the phenomenal success of Tesla in recent years is that customers view the cars as more than just an innovative technological product.
They also derive great satisfaction from making a purchase that has a positive impact on the environment.
Even though the cars have an understated, simplistic body design, the cars are immediately recognizable and distinguished from competing products in the automobile industry.Â
Tesla has not invested in updating the look or design of the vehicles from one model generation to another, and this has not hurt the sales of the EVs.
In fact, it could be a factor that has bolstered the brand image of the company.
The success of Tesla is sometimes compared to the meteoric rise of Apple computer company for its bold approach to offering a product that dares to break the mold of what established industry analysts believe are required ingredients for success.Â
The flaw in this comparison is that Tesla has only gained greater value, while Apple had years of downturns and obscurity before it became the giant global empire that it is today.
Tesla has maintained an impressive and record-breaking rise, and it seems that the company’s growth has no rival that could slow it down.
