Tesla has positioned itself as the industry standard in the market for electric cars. Elon Musk, the company’s eccentric and forward-thinking CEO, and the company have come to symbolize the reduction of carbon dioxide emissions from the automotive industry.
With its opponents, the manufacturer now produces more than 1.37 million electric cars yearly. With margins that leave its rivals pale with envy, it is successful.
Before falling to its asset value of just about $390 billion, its market valuation peaked at $1 trillion in 2021 making other automakers incomparable. The biggest automobile company in the world by volume of production, Toyota (TM), is evaluated at $191 billion, while Volkswagen (VWAGY) is estimated at approximately $83 billion. With market capitalizations of $51 billion for Ford (F) and $52 billion for General Motors (GM), respectively.
GM and Chrysler Went Bankrupt:
Tesla has four vehicle manufacturing units: one each in Shanghai, Austin, and Fremont, California, as well as one close to Berlin. The names and addresses of new vehicle assembly sites may be disclosed by the firm in the weeks ahead.
The Model 3 entry-level sedan, the Model Y SUV/crossover, the Model S premium sedan, the Model X luxury SUV/crossover, and the Tesla Semi are the five models that Tesla typically sells. This list, which keeps increasing, should include a new type in the year termed the Cybertruck.
Many individuals ignore the fact that Tesla would have perished 14 years ago. In the middle of the economic meltdown, it occurred in 2009. Six years after the establishment of Tesla, the automaker and its co-founder Musk had not yet developed a single one of the cars that the firm is today promoting.
The firm had only made a small quantity of Roadster supercars.
For the entire American automobile sector, the future remained gloomy. The Big Three of Detroit lacked hope. That same year had seen the bankruptcy of GM and Chrysler. Ford was the sole company that didn’t declare bankruptcy.
Since everything was working towards Tesla at the time, there was no choice except to pull back the veil. Electric cars did not perform well in the climate. Consumers who were impacted by the collapse only had one thought: to save, as investors left all risky investments.
But Daimler, the parent firm of Mercedes-Benz, appeared as the rescuer. Musk just made this statement in a Twitter post.
“I wonder what would have happened in 2009 if the Fed had raised rates instead of lowering them,” the billionaire wrote on Twitter on Jan. 13. “The higher the rates, the harder the fall.”
Daimler ‘Saved Tesla’:
“Lucky Tesla found an investor back then,” commented a Twitter user.
“True, the Daimler investment in 2009 is actually what saved Tesla,” Musk responded.
Tesla and Daimler entered into a strategic alliance on May 18, 2009, which included the German carmaker acquiring a holding in the American company.
According to a media release, the parent organization of Mercedes-Benz bought almost 10% of Tesla, and the two manufacturers chose to collaborate on initiatives involving individual cars, fully electric systems, and battery systems.
“Our strategic partnership is an important step to accelerate the commercialization of electric drives globally,” Dr Thomas Weber, member of the Board of Daimler AG, responsible for Group Research and Mercedes-Benz Cars Development, said at the time.
“It is an honor and a powerful endorsement of our technology that Daimler would choose to invest in and partner with Tesla,” Musk asserted. “We are looking forward to a strategic cooperation in a number of areas including leveraging Daimler’s engineering, production and supply chain expertise. This will accelerate bringing our Tesla Model S to production and ensure that it is a superlative vehicle on all levels.”
This partnership proved Tesla’s objective and Musk’s ambition. Daimler realized that electric cars were the future of the industry and that a short time to market was critical for success.
The agreement’s financial information was not made available to the public, although $50 million was mentioned in many sources. In 2014, Daimler sold its Tesla holding for a large 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 concluded on January 13.