Word has got around that Tesla shares are rising to ever higher heights and the company is now one of the ten most valuable in the world – on Wednesday it continued the rally it started last week and closed at $ 574 apiece and a total capitalization of $ 544 billion. But in the slipstream of Tesla, so to speak, smaller electric car manufacturers are also gaining momentum on the stock market: BYD and Nio, both from China, have overtaken traditional manufacturers such as GM and BMW – and are getting closer and closer to Daimler and Volkswagen.
Nio share has increased sixteen-fold
The price development at Nio this year was nothing short of spectacular. Founded in 2014 and listed on the New York Stock Exchange since 2018, the all-electric car company began, similar to Tesla, with the roadster with the two-seater sports car EP9. Since then, it has also launched three electric SUVs of various sizes that are selling well in China, despite higher prices than Tesla. In the second half of 2021, Nio wants to take the step to Europe, but initially only to the electric car country Norway.
The Nio share has risen from a good 3 dollars in the year to date to 53.69 dollars. The price has thus increased more than sixteen-fold – an even more stormy development than at Tesla, whose price is currently a good six times as high as at the beginning of the year.
“Times they are a-changing …” – the trends in the automotive industry can – despite hypes – be read off the market assessments: Tesla rises to almost € 400 billion, China OEMs Nio and BYD are worth more than BMW, XPeng outperforms Ford etc. .https: //t.co/9aLzH3iVuO#ElectricVehicles pic.twitter.com/0aHCqxOePe
– Stefan Bratzel (@StefanBratzel) November 25, 2020
Nio’s market capitalization is now around $ 73 billion. This is already above that of the large US car company General Motors (GM) and BMW from Germany, which each come to a good 50 billion dollars. This emerges from a study by the German Center of Automotive Management, which its head Professor Stefan Bratzel pointed out on Wednesday on Twitter (the values in his graphic are given in euros).
Tesla at the front, Chinese are coming
With BYD, another (and older) car startup from China has taken over from GM and BMW, according to Bratzel’s overview. The company was founded in 1995 as a battery manufacturer and entered the automotive market in 2003. BYD does not specialize in electric cars, but also builds many hybrids; on the other hand, the Chinese are already offering all-electric commercial vehicles. The price of its shares has increased roughly fivefold this year, and its market capitalization is around 73 billion dollars, like Nio.
Tesla has long been the world’s highest-rated car company, with Toyota, the long-time leader, in second place with less than half of them, followed by Volkswagen. Daimler, in turn, as the fourth after the Bratzel graphic, has basically already caught up: Its market capitalization on Thursday was around 73 billion dollars, as with Nio and BYD. Volkswagen is still slightly ahead of the Chinese with 93 billion dollars, but that too has recently been smaller despite intensive electric vehicle activities. “Times are changing,” as the auto professor wrote about his value overview.