Finance - Investment in Volkswagen vs Tesla

Résumé du document

It is a comparison of two different investments (Volkswagen & Tesla) and how they would be presented to an investor.

Extraits

[...] P., Miller, J. K. and Clark, J. R. (2019) ‘Overcoming Barriers to Entry in an Established Industry: TESLA MOTORS', California Management Review, pp. 85–103. doi: 10.1525/cmr.2015.57.4.85. Vaughan, A. (2021) ‘Rise of the electric cars', New Scientist, 249(3317), p doi: 10.1016/s0262-4079(21)00058-0. [...]

[...] Which one of those two companies would ultimately be the more successful and then the best investment for the years to come? To answer this question, we will first present and get insights of those two companies and their products. We will then compare where they stand currently in the market, and finally assess their future evolutions. Two different players within the same market Tesla, Inc. creates, produces, manufacturers, and sells electric cars. It also creates, manufactures, installs, and sells solar energy production and storage systems. [...]

[...] The Roadster will be limited in production and will most likely have little impact on sales or profits, but the Cybertruck and Semi have tremendous potential. Tesla has gained significant market share for a relatively limited product portfolio over time, and as batteries get cheaper, ranges become larger, and more and more cities prohibit gasoline and diesel cars, Tesla does have a lot of assets. Historical manufacturers have scale advantages in terms of funding and established footprints, but they are years behind Tesla in terms of growth. G. S., G. and L. S., R. [...]

[...] Notes PHEV = plug-in hybrid electric vehicle ; BEV = battery electric vehicle. Source: IEA, Global electric car stock, 2010-2019, IEA, Paris https://www.iea.org/data-and-statistics/charts/global-electric-car-stock-2010-2019 The graph here clearly states the booming evolution of the global EV market between 2010 and 2019, showing the amount of EV cars being held in each region. It is a global appreciation that we identify here, with the global number of cars reaching around 5 million in 2019, with the largest market being in China. G. [...]

[...] (2020) As seen on this report provided by Bloomberg, the exponential growth of electric cars would eventually lead to 1/3 of new vehicle sales in year 2040. However, we can ask ourselves, where would Tesla and Volkswagen position themselves on this flourishing market? According to Mario Herger, an influential Silicon Valley technology analyst, Tesla may be delivering as much as 5.1 million cars per year before 2025, based on a 59% annual growth rate over the last seven years. According to Canalys, this constitutes about one-quarter of the 20 million new EV revenues in 2025. [...]