Tesla Motors may be the most-successful automobile startup in the last half-century and, at least according to Morgan Stanley, could be the world’s most important.
Tesla Motors’ initial public offering started at just $19.10, just shy of four years ago, a modest beginning for a startup automaker with a totally unique vehicle, the fully-electric Tesla Roadster and Tesla Model S electric vehicles. At first, stock value growth was modest and, for nearly three years, it never topped $50 per share, but the last year has been explosive, TSLA stock going for $243, and a market value of over $30 billion. Still, this pales in comparison to one of the biggest automakers in the world, Toyota Motor Corporation, whose TM stock may sell for half the price, but whose overall value is nearly $190 billion.
According to financial advisory corporation Morgan Stanley, however, Tesla Motors could be the world’s most-important automaker, in spite of differing values, but how so? Research analyst Adam Jonas said of Tesla Motors, “Not even two years after the delivery of the first Model S, Tesla Motors has transformed from fledgling start-up to arguably the most important car company in the world. We are not joking. Tesla is also emerging as an emblematic force in America’s effort to foster high tech manufacturing job growth.”
Tesla Motors, in itself, in the face of other failed ventures, such as Fisker Automotive and A123 Systems, has proven to be a leader in electric vehicles and even conventional vehicles. After all, no other automaker has ever received a 99:100 Consumer Reports rating. So, what do other automakers do with a leader? They follow! General Motors has a so-called “Team Tesla” dedicated to developing long-range electric vehicles, and BMW’s “spirit of innovation” has been revitalized, all following the leadership and success of one small company, Tesla Motors. Tesla Motors may even single-handedly change the way we buy cars, which will be a breath of fresh air for people who dread traditional automobile dealerships.
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