Tesla tops the rankings as the world’s most valuable automaker, with BYD surprising everyone with its 3rd starting place, overtaking Volkswagen
Tesla (NASDAQ: TSLA) continues to dominate overall value with a market cap of $740.58 billion (NYSE: TM), according to the latest Manufacturer Market Value Rankings released Tuesday. BYD (OTC: BYDDY), a Chinese electric car company, overtakes Volkswagen (OTC: VWAGY) to take third place on the list with a combined market value of $127.23 billion, the largest shift on the list.
Although Tesla is a newer company, it has the potential to better adapt to market fluctuations. Tesla, for example, was able to overcome chip shortages in 2021 by changing some software and using alternative CPUs. Due to the shrinking market for consumer electronics chips, Tesla will have more discretion over chip purchases in 2022.
To ensure the supply of lithium batteries, Tesla worked with Panasonic, LG Energy Solution (LGES) and CATL from different countries. Tesla has more control over batteries than other automakers, even if battery supplies are limited.
Volkswagen, Mercedes-Benz (OTC: DDAIF), BMW (BIT: BMW), General Motors (NYSE: GM), Ford (NYSE: F), Stellantis (NYSE: STLA) and Honda rank fourth through tenth respectively ( NYSE: HMC).
BYD, the world’s first traditional automaker, said on April 3 that it would stop selling gas-powered vehicles and instead focus on pure electric and plug-in hybrid vehicles
In May this year, BYD sold 114,183 vehicles, up 152.8 percent year-on-year. BYD’s sales volume has grown rapidly since last year thanks to hybrid and pure electric vehicles. In 2021, BYD’s minimum monthly sales volume was just over 20,000 units, but a year later it had surpassed 120,000 units.
Tesla stock has plummeted more than 35% since Musk announced his attempt to buy Twitter. Even so, the market valuations of Toyota and BYD, which rank second and third, are only about 30% and 20% of Tesla, respectively.
Despite a variety of challenges in the Chinese market, such as B. COVID-19 borders and material shortages, BYD’s production seems to be running smoothly and the company has beaten its predecessors Faw-Volkswagen and SAIC Volkswagen.
BYD is now the only Chinese manufacturer among the top ten automakers in the world by market value. While BYD’s market value and stock price have increased largely due to automobile production, the company also has other projects such as cellphone components and assembly, and solar and rechargeable units.
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