OfTheCross
Veteran
Stop Dissing Electric-Car Companies Already
This was also the year when investors reconfigured the $2.7 trillion auto industry.
Electric-car companies are suddenly worth half of the total market capitalization of the world’s 10 most valuable automakers. That’s because money managers sized up the convergence of government policies and people’s preferences combating climate change and made alternative energy their biggest bet.
XPeng’s revenue will grow 160% in 2021, followed by Nio’s 87% and Tesla’s 47%, when the average for the top 10 automakers will be 36%, according to the analyst estimates. They predict that XPeng, Nio and Tesla sales will increase another 94%, 68% and 28%, respectively, in 2022 when the Top 10 average will be 22%.
Joining the S&P 500 index is especially propitious for Tesla. Among more than 1,200 mutual funds worldwide using the S&P 500 as their benchmark, $4.7 trillion, or 93% of them, disclosed no ownership of Tesla shares in their most recent regulatory filings. If Tesla represents 1% of the index, it could easily receive $47 billion from the passively managed assets tracking the benchmark.
That’s another reason Tesla shows no signs retreating.
This was also the year when investors reconfigured the $2.7 trillion auto industry.
Electric-car companies are suddenly worth half of the total market capitalization of the world’s 10 most valuable automakers. That’s because money managers sized up the convergence of government policies and people’s preferences combating climate change and made alternative energy their biggest bet.
XPeng’s revenue will grow 160% in 2021, followed by Nio’s 87% and Tesla’s 47%, when the average for the top 10 automakers will be 36%, according to the analyst estimates. They predict that XPeng, Nio and Tesla sales will increase another 94%, 68% and 28%, respectively, in 2022 when the Top 10 average will be 22%.
Joining the S&P 500 index is especially propitious for Tesla. Among more than 1,200 mutual funds worldwide using the S&P 500 as their benchmark, $4.7 trillion, or 93% of them, disclosed no ownership of Tesla shares in their most recent regulatory filings. If Tesla represents 1% of the index, it could easily receive $47 billion from the passively managed assets tracking the benchmark.
That’s another reason Tesla shows no signs retreating.
