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Tesla’s Journey: From IPO to Passing Ford in Value, in Just 7 Years

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In Tesla’s final years as a private company, things got pretty hectic.

As we showed in Part 1: Tesla’s Origin Story, the launch of the Roadster was a public relations success, but it created all kinds of problems internally. There were massive cost overruns, a revolving door of CEOs, layoffs, and even a narrow escape from bankruptcy.

Fortunately, by 2010 the company was able to forget these troubles after a successful IPO. The company secured $226 million in capital, and hitting the public markets started a roller coaster ride of growth.

Rise of Tesla: The Company (Part 2 of 3)

Today’s giant infographic comes to us from Global Energy Metals, and it is the second part of our three-part Rise of Tesla Series, which is a definitive source for everything you ever wanted to know about the company.

Part 2 shows major events from 2010 until today, and it tracks the company’s rapid growth along the way.

Part 1: Tesla's Origin StoryPart 2: From IPO and OnwardsVisualizing Elon Musk's Vision for the Future of Tesla

Tesla's Journey: From IPO to Passing Ford in Value, in Just 7 Years
Part 1: Tesla's Origin StoryPart 2: From IPO and OnwardsVisualizing Elon Musk's Vision for the Future of Tesla

Tesla was the first American car company to IPO since The Ford Motor Company went public in 1956.

Interestingly, it only took seven years for Tesla to match Ford’s value – here are the major events during this stretch of time that made this incredible feat possible.

2010

After securing funding from the public markets, Tesla was positioned for its next big leap:

  • The company had just narrowly escaped bankruptcy
  • The Tesla Roadster helped to dispel the stigma around EVs, but it was unclear if it could be parlayed into mainstream success
  • The company was free from its feud and lawsuit with co-founder Martin Eberhard
  • Tesla had just taken over its now famous factory in Fremont, CA

It was time to focus on the next phase of Tesla’s strategy: to build the company’s first real car from scratch – and to help the company achieve the economies of scale, impact, and reputation it desired.

2011

In 2011, Tesla announces that the Roadster will be officially discontinued.

Instead, the company starts focusing all efforts on two new EVs: the Model S (A full-size luxury car) and the Model X (A full-size luxury crossover SUV).

2012

The Model S was Tesla’s chance to build a car around the electric powertrain, rather than the other way around.

When we started Model S, it was a clean sheet of paper.

– Franz Von Holzhausen, Chief Car Designer

In June 2012, the first Model S hits the road – and the rest is history. The model won multiple awards, including being recognized as the “safest car ever tested” by the NHTSA and the “Best car ever tested” by Consumer Reports. Over 200,000 cars were eventually sold.

But despite the success of the new model, Tesla still faced a giant problem. Lithium-ion batteries were still too expensive for a mass market car to be feasible, and the company needed to “bet the farm” on an idea to bring EVs to the mainstream.

2013

Tesla reveals initial plans for its Gigafactory concept, an ambitious attempt to bring economies of scale to the battery industry.

In time, the details of those plans solidified:

  • Cost: $5 billion
  • Partner: Panasonic
  • Objective: To reduce the cost of lithium-ion battery packs by 30%
  • Location: Sparks, Nevada
  • Size: Up to 5.8 million sq. ft (100 football fields)

The company believed that through economies of scale, reduction of waste, a closer supply chain, vertical integration, and process optimization, that the cost of batteries could be sufficiently reduced to make a mass market EV possible.

Under Tesla’s first plan, the Gigafactory would be ramped up to produce batteries for 500,000 EVs per year by 2020. Later on, the company eventually moved that target forward by two years.

2014

Tesla makes significant advances in software, hardware, and its mission.

  • Autopilot is released for the first time, which gives the Model S semi-autonomous driving and parking capabilities
  • By this time, Tesla’s Supercharger network is up to 221 stations around the world
  • Tesla goes open source, releasing all of the company’s patents for anyone to use

2015

After massive and repeated delays because of issues with the “falcon wing” doors, the Model X finally is released.

In the same year, the Tesla Powerwall is also announced. Using a high-capacity lithium-ion battery and proprietary technology – the Powerwall is a major step towards Tesla achieving its major end goal of integrating energy generation and storage in the home.

2016

Tesla unveils its Model 3 – the car for the masses that is supposed to change it all.

Here are the specs for the most basic model, which is available at $35,000:

  • Price: $35,000
  • Torque: 415 lb-ft
  • Power: 235 hp (Motor Trend’s est.)
  • 0-60 mph: 5.6 seconds
  • Top speed: 130 mph
  • Range: 220 miles

After being announced, the Model 3 quickly garnered 500,000 pre-orders. To put the magnitude of this number in perspective – in six years of production of the Model S, the company has only delivered about 200,000 cars in total so far.

In 2016, Tesla also announces that it is taking over of Elon Musk’s other companies, SolarCity, for $2.6 billion of stock. Elon Musk owns 22% of SolarCity shares at the time of the takeover.

The goal: to build a seamlessly integrated battery and solar product that looks beautiful.

2017

2017 was a whirlwind year for Tesla:

  • Consumer Reports names Tesla the top American car brand in 2017
  • The Tesla Gigafactory I begins battery cell production
  • Tesla wins bids to provide grid-scale battery power in South Australia and Puerto Rico
  • Tesla starts accepting orders for its new solar roof product
  • The Tesla Semi is unveiled – a semi-truck that can go 0-60 mph in just 5 seconds, which is 3x faster than a diesel truck
  • Model 3 deliveries begin, though production issues keep them from ramping at the speed anticipated

Tesla also unveils the new Roadster – the second-gen version of the car that started it all.

This time, it has unbelievable specs:

  • 0-60 mph: 1.9 seconds
  • 200 kWh battery pack
  • Top speed: above 250 mph
  • 620 mile range (It could drive from San Francisco to LA and back, without needing a recharge)

The point of doing this is to give a hardcore smackdown to gasoline cars

– Elon Musk, Tesla Co-Founder and CEO

The new Roadster will go into production in 2020.

A Look to the Future

In 1956, the IPO of the Ford Motor Company was the single largest IPO in Wall Street’s history.

Tesla IPO’d a whopping 54 years later, and the company has already passed Ford in value:

Ford: $49.9B
Tesla: $52.3B
(numbers from Dec 31, 2017)

An incredible feat, it took only seven years for Tesla to pass Ford in value on the public markets. However, this is still the beginning of Tesla’s story.

See Musk’s vision for the future in Part 3 of this series.

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Energy

Tesla is Now the World’s Most Valuable Automaker

Thanks to a surging stock price, Tesla is now the world’s most valuable automaker – surpassing industry giants Toyota and Volkswagen.

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tesla most valuable automaker

Tesla is Now the World’s Most Valuable Automaker

Even in the midst of a pandemic, Tesla continues to reach new heights.

The company, which began as a problem-plagued upstart a little over 15 years ago, has now become the world’s most valuable automaker – surpassing industry giants such as Toyota and Volkswagen.

This milestone comes after a year of steady growth, which only hit a speed bump earlier this year due to COVID-19’s negative impact on new car sales. Despite these headwinds, Tesla’s valuation has jumped by an impressive 375% since this time last year.

How does Tesla’s value continue to balloon, despite repeated cries that the company is overvalued? Will shortsellers declare a long-awaited victory, or is there still open road ahead?

Tesla’s Race to the Top

Earlier this year, Tesla hit an impressive milestone, surpassing the value of GM and Ford combined. Since then, the automaker’s stock has continued it’s upward trajectory.

Thanks to the popularity of the Model 3, Tesla sold more cars in 2019 than it did in the previous two years combined:

tesla auto deliveries by quarter

As well, the company is taking big steps to up its production capacity.

Austin, Texas and Tulsa, Oklahoma are currently rolling out the incentives to attract Tesla’s new U.S.-based factory. The company is also increasing its global presence with the construction of Giga Berlin, it’s first European production facility, as well as completing the ongoing expansion of its Giga Shanghai facility in China.

Battle of the Namesakes

Tesla’s most recent price bump was fueled in part by a leaked internal memo from Tesla’s CEO, Elon Musk, urging the company’s staff to go “all out” on bringing electric semi trucks to the global market at scale.

It’s time to go all out and bring the Tesla Semi to volume production.

– Elon Musk

Of course, Musk’s enthusiasm for semi trucks isn’t coming from nowhere. Another company, Nikola (also named after famed inventor Nikola Tesla), is focused on electrifying the two million or so semi trucks in operation in the U.S. market.

Although Nikola has yet to produce a vehicle, its market cap has surged to $24 billion – which puts its valuation nearly on par with Ford. Much like Tesla, the company already has preorders from major companies looking to add electric-powered trucks to their delivery fleets.

For major brands looking to hit ESG targets, zero-emission heavy-duty trucks is an easy solution, particularly if the vehicles also live up to claims of being cheaper over the vehicle’s lifecycle. The big question is which automaker will capitalize on this mega market first?

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Energy

6 Ways Hydrogen and Fuel Cells Can Help Transition to Clean Energy

Here are six reasons why hydrogen and fuel cells can be a fit for helping with the transition to a lower-emission energy mix.

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Hydrogen and fuel cells

While fossil fuels offer an easily transportable, affordable, and energy-dense fuel for everyday use, the burning of this fuel creates pollutants, which can concentrate in city centers degrading the quality of air and life for residents.

The world is looking for alternative ways to ensure the mobility of people and goods with different power sources, and electric vehicles have high potential to fill this need.

But did you know that not all electric vehicles produce their electricity in the same way?

Hydrogen: An Alternative Vision for the EV

The world obsesses over battery technology and manufacturers such as Tesla, but there is an alternative fuel that powers rocket ships and is road-ready. Hydrogen is set to become an important fuel in the clean energy mix of the future.

Today’s infographic comes from the Canadian Hydrogen and Fuel Cell Association (CHFCA) and it outlines the case for hydrogen.

6 Ways Hydrogen and Fuel Cells Can Help Transition to Clean Energy

Hydrogen Supply and Demand

Some scientists have made the argument that it was not hydrogen that caused the infamous Hindenburg to burst into flames. Instead, the powdered aluminum coating of the zeppelin, which provided its silver look, was the culprit. Essentially, the chemical compound coating the dirigibles was a crude form of rocket fuel.

Industry and business have safely used, stored, and transported hydrogen for 50 years, while hydrogen-powered electric vehicles have a proven safety record with over 10 million miles of operation. In fact, hydrogen has several properties that make it safer than fossil fuels:

  • 14 times lighter than air and disperses quickly
  • Flames have low radiant heat
  • Less combustible
  • Non-toxic

Since hydrogen is the most abundant chemical element in the universe, it can be produced almost anywhere with a variety of methods, including from fuels such as natural gas, oil, or coal, and through electrolysis. Fossil fuels can be treated with extreme temperatures to break their hydrocarbon bonds, releasing hydrogen as a byproduct. The latter method uses electricity to split water into hydrogen and oxygen.

Both methods produce hydrogen for storage, and later consumption in an electric fuel cell.

Fuel Cell or Battery?

Battery and hydrogen-powered vehicles have the same goal: to reduce the environmental impact from oil consumption. There are two ways to measure the environmental impact of vehicles, from “Well to Wheels” and from “Cradle to Grave”.

Well to wheels refers to the total emissions from the production of fuel to its use in everyday life. Meanwhile, cradle to grave includes the vehicle’s production, operation, and eventual destruction.

According to one study, both of these measurements show that hydrogen-powered fuel cells significantly reduce greenhouse gas emissions and air pollutants. For every kilometer a hydrogen-powered vehicle drives it produces only 2.7 grams per kilometer (g/km) of carbon dioxide while a battery electric vehicle produces 20 g/km.

During everyday use, both options offer zero emissions, high efficiency, an electric drive, and low noise, but hydrogen offers weight-saving advantages that battery-powered vehicles do not.

In one comparison, Toyota’s Mirai had a maximum driving range of 312 miles, 41% further than Tesla’s Model 3 220-mile range. The Mirai can refuel in minutes, while the Model 3 has to recharge in 8.5 hours for only a 45% charge at a specially configured quick charge station not widely available.

However, the world still lacks the significant infrastructure to make this hydrogen-fueled future possible.

Hydrogen Infrastructure

Large scale production delivers economic amounts of hydrogen. In order to achieve this scale, an extensive infrastructure of pipelines and fueling stations are required. However to build this, the world needs global coordination and action.

Countries around the world are laying the foundations for a hydrogen future. In 2017, CEOs from around the word formed the Hydrogen Council with the mission to accelerate the investment in hydrogen.

Globally, countries have announced plans to build 2,800 hydrogen refueling stations by 2025. German pipeline operators presented a plan to create a 1,200-kilometer grid by 2030 to transport hydrogen across the country, which would be the world’s largest in planning.

Fuel cell technology is road-ready with hydrogen infrastructure rapidly catching up. Hydrogen can deliver the power for a new clear energy era.

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