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Tesla Hit Over $460bn in Market Cap, Seven Times More than Ferrari, Porsche and Aston Martin Combined

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Tesla model S

Tesla’s Market Value Rises Over $460bn

The coronavirus outbreak has affected many industries, but the automotive industry is among the hardest hit. After carmakers stopped production and dealerships closed showrooms amid COVID-19 lockdown, global car sales slumped worse than ever before.

However, the luxury car market was generally less affected by the financial downturn caused by the coronavirus pandemic.

According to data presented by Stock Apps, the market capitalization of the world’s most valuable car company, Tesla, hit over $460bn this week, almost seven times more than Ferrari, Porsche and Aston Martin combined.

Tesla Market Cap Soared 513% Since January

The 2020 has been a fantastic year for Tesla (NASDAQ: TSLA), despite the COVID-19 effects on the global automotive industry. The company’s stock price surged by nearly 200% in the last three months and they’re up about 500% on the year, despite a 4.9% revenue drop in the second quarter of 2020.

One of the reasons for such a premium valuation is Tesla’s ability to convince investors that it’s much more than just an automaker, and plans to make its vehicles capable of deploying into an autonomous “robotaxi” ride-sharing service prove that.

In December 2019, the market cap of the world’s most valuable car company stood at $75.7bn, revealed the YCharts data. By the end of the first quarter of 2020, this figure rose to $96.9bn, despite the COVID-19 crisis. Statistics show Tesla market cap surged by 107% in the next three months reaching $200.8bn value at the end of June. At the beginning of this week, it jumped over $460bn, which is four times the IBM market cap. Since the beginning of the year, the Tesla market cap has soared by 513%.

Ferrari Market Capitalization Rose by $7.1bn in 2020

The disruptions of the COVID-19 pandemic caused a substantial hit to the Italian supercar maker Ferrari (NYSE: RACE), who was forced to close its factories for seven weeks. The Q2 2020 financial report revealed a 42% plunge in revenue year-on-year and halved shipment of vehicles due to both production and delivery suspensions.

The company also narrowed the range of its full-year profit guidance with the estimated revenue of more than €3.4bn, compared to previous guidance of €3.4bn to €3.6bn, and the adjusted earnings before interest, tax, depreciation and amortization of between €1.07bn and €1.12bn.

Nevertheless, the Italian luxury carmaker has performed better than most other car manufacturers and remains confident of a bounce-back in the second half of 2020 thanks to its strong order book.

In December 2019, the market capitalization of the Italian luxury carmaker touched nearly $41.2bn. After the Black Monday crash in March, this figure dropped to $38.7bn. However, the second quarter of 2020 witnessed an increasing trend, with the Ferrari market cap rising to $42.3bn in June. Statistics show the company’s market capitalization stood at $48.3bn at the beginning of this week, a 17% increase since January.

Porsche and Aston Martin Market Cap Plunged in 2020

While Tesla and Ferrari’s stocks performed well amid the coronavirus crisis, other leading luxury sports car manufacturers witnessed a plunge in their market capitalization since the beginning of the year.

Statistics show the combined value of shares of Porsche dropped by 19% in the last eight months, with the figure falling from $23.1bn in January to $18.7bn this week.

The financial results for the first half of the year revealed the German automaker’s sales decreased by 7.3% year-on-year to €12.42bn. The company recorded an operating profit of €1.2bn, while deliveries in the first six months of 2020 dropped by 12.4% globally to under 117,000 vehicles.

Statistics show Aston Martin (LON: AML) more than quadrupled its operating loss for the first six months of 2020 after a sharp fall in sales and revenue amid the COVID-19 pandemic. The British sports car manufacturer sold just 1,770 vehicles in the first half of the year, while total retail sales stumbled to £1.77bn, a 41% plunge year-on-year.

Moreover, the company’s market capitalization halved in 2020, with the combined value of stocks falling from $1.6bn in January to $760.2 million in August.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Bank Stocks Top Charts Amid Strong Third Quarter Performance

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Zenith Bank

Bank stocks top both gainers’ and top traded stocks’ charts on Tuesday as investors at the Nigerian Stock Exchange continues to increase their holdings of banks’ stocks amid strong third-quarter financial results.

Zenith Bank led the most traded stocks for a second consecutive day on Tuesday following a declaration of  N509 billion gross earnings and N177 billion profit after tax in the first nine months of the year.

Investors traded 71,933,841 shares of Zenith Bank valued at N1,730,151,404.20 during the trading hours of Tuesday.

Transcorp, the only non-bank stock on the top five trades, followed Zenith Bank with 37,172,526 shares worth N32,853,263.27.

Guaranty Trust Bank Plc, Access Bank and United Bank for Africa (UBA) exchanged 30,003,182 units, 29,549,235 units and 29,332,033 units estimated at N1,022,126,997.60, N243,311,726.70 and N236,303,261.20, respectively.

Investors exchanged a total of 365.414 million shares valued at N4.692 billion in 6,325 deals on Tuesday to return the bourse to the green zone after two days of consecutive declines.

The Nigerian Stock Exchange market capitalisation rose by N114 billion from N17.829 trillion it closed on Monday to N17.943 trillion on Tuesday. While the NSE All-Share Index gained 220.82 index points or 0.06 percent to 34,349.56 index points it settled on Tuesday, up from 34,119.74 index points on Monday.

Stanbic IBTC Bank led gainers with N2.8 or 7.08 percent gain to finish the day at N42.35 per share. See the details below.

Top Trades 

Symbols Volume Value
ZENITHBANK 71,933,841 N1,730,151,404.20
TRANSCORP 37,172,526 N32,853,263.27
GUARANTY 30,003,182 N1,022,126,997.60
ACCESS 29,549,235 N243,311,726.70
UBA 29,332,033 N236,303,261.20

Top Gainers

Symbols Last Close Current Change %Change
STANBIC N39.55 N42.35 2.8 7.08%
UBA N7.7 N8.2 0.5 6.49%
ACCESS N7.9 N8.35 0.45 5.70%
FBNH N6.7 N7.15 0.45 6.72%
UBN N5.5 N5.9 0.4 7.27%

Top Losers

Symbols Last Close Current Change %Change
JBERGER N19 N17.3 -1.7 -8.95%
FIDSON N5.4 N4.87 -0.53 -9.81%
GUINNESS N18 N17.5 -0.5 -2.78%
ETERNA N4.61 N4.15 -0.46 -9.98%
UACN N7.95 N7.65 -0.3 -3.77%

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Insider Dealing: Paul Miyonmide Gbededo, MD Flour Mills, Purchased 1.95 Million Shares in Flour Mills

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flour mills posts 184% increase in PAT

In a disclosure statement filed with the Nigerian Stock Exchange, the management of Flour Mills of Nigeria Plc said Paul Miyonmide Gbededo, the Group Managing Director, purchased 1,949,839 shares in the company.

In a statement signed by Umolu Joseph, the Company Secretary and Director, Flour Mills of Nigeria, Gbededo bought the 1,948,839 shares at N28 per unit on November 17, 2020.

The Managing Director invested N54,567,492 in Flour Mills of Nigeria Plc in a move that suggested confidence in the future of the company.

The disclosure is in line with the Nigerian Security and Exchange Commission’s new policy on insider dealings. See the transaction details below.

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Insider Dealing: Chide Agbapu Buys 1 Million Shares in Fidelity Bank

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fidelity-bank

The management of Fidelity Bank on Friday said Mr. Chidi Agbapu, a non-executive director, bought 1,000,000 shares of Fidelity Bank Plc.

In line with the Nigerian Stock Exchange (NSE) disclosure policy, the lender said Agbapu purchased the shares in two different transactions on November 9, 2020.

According to a statement signed by Ezinwa Unuigboje, Company Secretary, Fidelity Bank, the shares were purchase in two deals of 500,000 units each at N2.75 per share. See the details below.

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