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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.

Stock Market

Global Sell-off Should be a Reality Check for Investors: deVere CEO

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Global Sell off - Investors King

Concerns about inflation that are rattling global stock markets on Tuesday should be used as a reality check for investors, says the CEO of one of the world’s largest financial advisory and fintech organizations.

The observation from Nigel Green, chief executive and founder of deVere Group comes as the pan-European Stoxx 600 index dropped 2.3%, with London’s FTSE 100 falling 2.4%.

Losses in Europe follow those in the Asia Pacific region. Hong Kong’s Hang Seng closed more than 2% lower and Japan’s Nikkei 225 ended the Tokyo trading session having shed more than 3%.

Meanwhile, U.S. futures are down across the board ahead of the opening bell in New York.

Mr Green says: “It is to be expected that there would be a jump in prices and supply shortages, in goods like chips and some commodities, as economies re-open and pent-up demand is unleashed by households, businesses and entire industries.

“We’re at a point of major readjustment following an unprecedented economic shock and this is fuelling concerns that rising inflation will trigger central banks to tighten monetary policy which will hit asset prices.

“It is this scenario that is rattling markets and triggering a global sell-off.”

He continues: “Tech shares are bearing the brunt of the sell-off, but this will also be used as an opportunity.

“With our daily lives becoming ever more digitalized – and at a staggering pace – tech will remain one of the mega-trends for investors for the foreseeable future.

“Savvy investors will be drawn to the massive growth that tech offers and this sell-off will used as a buying opportunity.  Nobody seriously believes the future isn’t online.”

Therefore, says Mr Green, investors would be wise to be “selective” about the sell-off.

“With some of the heat being taken out of the markets, with some stocks way too high, they are likely to – perhaps more judiciously than before – move to capitalize on this dip.”

The deVere CEO concludes: “Of course, I don’t have a crystal ball, but history shows that stock markets typically rise over the longer-term.

“Therefore, in the near future, I predict many investors will be seeking out the buying opportunities that exist.”

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Nigerian Stock Exchange

Investors Jump on Union Bank of Nigeria’s Shares Amid Acquisition Rumour

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Union bank - Investors King

Shares of Union Bank of Nigeria Plc, a leading financial institution in Nigeria, rose by 50 kobo or 9.26 percent on Monday following reports that Atlas Mara Limited, a 49.7 percent owner in the bank has been talking to investors to sell its stake.

Investors King had reported that Bloomberg sources claimed Atlas Mara Limited, a London Stock Exchange-listed pan-African banking group started by Mr. Bob Diamond is in talks with Zenith Bank, Access Bank and other investors across Africa to sell its holding in the bank.

Since the report became public investors have been acquiring shares of Union Bank in case Zenith Bank or Access Bank, one of the leading banks in the country, acquire it. Even the bank’s CEO, Godson Chukwuemeka Okonkwo, purchased an additional 2,431,917 ordinary shares of the bank on Thursday, according to the bank’s latest disclosure filing.

Union Bank of Nigeria was the third-highest gainer on Monday.

The Nigerian Exchange Limited gained N59.4 billion on Monday to close at N20.491 trillion on Monday.

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Nigerian Stock Exchange

Nigerian Exchange Limited Gains N59.4 Billion on Monday

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Nigerian Stock Exchange - Investors King

Stocks in Africa’s largest economy, Nigeria, gained N59.4 billion on Monday amid positive first-quarter results.

The Nigerian Exchange Limited All-Share Index rose by 0.29 percent from 39,198.75 index points it closed on Friday to settle at 39312.74 index points on Monday.

During the trading hours of Monday, investors traded 324.187 million shares valued at N3.281 billion in 4,867 deals.

The market value of listed stocks grew by N59.4 billion from N20.431 trillion recorded on Friday to N20.491 trillion on Monday.

Regency Assurance Plc (Regalins) led gainers with N0.03 or 9.68 percent to close the day at N0.31 per share.

Associated Bus Company Plc (ABCTRANS) followed with the same amount of gain, N0.03 or 9.68 percent to settle at N0.31 a share. Union Bank of Nigeria came third with N0.5 or 9.26 percent to close at N5.5 per share. See the details below.

Top Gainers 

Symbols Last Close Current Change %Change
REGALINS N0.31 N0.34 0.03 9.68%
ABCTRANS N0.31 N0.34 0.03 9.68%
UBN N5.40 N5.90 0.50 9.26%
LINKASSURE N0.69 N0.75 0.06 8.70%
MBENEFIT N0.37 N0.40 0.03 8.11%

Top Losers

Symbols Last Close Current Change %Change
UNITYBNK N0.60 N0.55 -0.05 -8.33%
JAPAULGOLD N0.60 N0.56 -0.04 -6.67%
NEIMETH N1.82 N1.71 -0.11 -6.04%
FLOURMILL N31.00 N29.50 -1.50 -4.84%
CHAMS N0.22 N0.21 -0.01 -4.55%

Top Trades

Symbols Volume Value
ETRANZACT 72,175,979.00 N162,395,952.75
ZENITHBANK 44,000,748.00 N1,015,465,286.05
ACCESS 22,978,740.00 N189,173,515.95
UBA 16,585,198.00 N119,352,727.00
MANSARD 16,429,809.00 N14,202,316.49

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