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The World’s Largest Automakers, By Market Value

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Tesla is the World's 4th Largest Automaker by Value

Tesla is the World’s 4th Largest Automaker by Value

This is despite only delivering 76,230 vehicles in 2016.

The Chart of the Week is a weekly Visual Capitalist feature on Fridays.

It’s been another breakout year for Tesla.

Over the course of 2017, the company’s market capitalization has soared beyond those of major manufacturers like Ford, GM, BMW, Honda, and Nissan. This thrust can be partly attributed to the company’s Model S, which reigns supreme as the top-selling plug-in electric car worldwide in 2015 and 2016.

But more importantly for Tesla, this massive momentum is based on the company’s much-anticipated future performance. Investors and analysts eagerly anticipate progress as the company ramps up production of the more affordable Model 3, and many also strongly believe that Elon Musk brings an “X Factor” that could translate into future returns.

In today’s charts, we look at Tesla’s ascent in valuation to become the #4 ranked automaker globally, and also the #1 maker in America. We also show why the value assigned to Tesla’s astonishing valuation may be premature, at least based on conventional metrics.

Tesla’s Rapid Ascent

In the opening months of 2013, Tesla was just starting to plan deliveries for its Model S. At the time, the company was worth a mere $3.9 billion – just 7% of the value of Ford.

Since then, Tesla’s value has skyrocketed to make it the most valued auto company in North America:

Big 3 Automakers by Market Capitalization

Despite only producing 76,230 vehicles in 2016, Tesla is now the biggest of the “Big 3” – and this puts a lot of pressure on the company to live up to the vast expectations held by investors and media.

The Speculator’s Gambit

With so much hype and value assigned to expectations of future performance, Tesla and its enthusiastic investors are in a potentially tough spot.

Even though it is the most valued car company in the United States, Tesla is much less impressive by more conventional metrics:

Tesla vs. Everybody

The company has just a fraction of the employees, vehicle deliveries, and revenue of its competitors. Tesla also treads a similar path to Amazon, in that it will likely take a while for the company to ever post a profit.

Here’s another look, this time showing Tesla’s metrics as a percentage of GM’s:

MetricTeslaGMTesla (as a % of GM)
Employees (2016)17,800225,0007.9%
Vehicle Deliveries (2016)76,00010,000,0000.8%
Revenue (2016)$7.0B$166.4B4.2%
Profit (2016)-$0.8B$9.4Bn/a

Tesla is producing less than 1% as many cars as GM, but is worth more in market value.

That’s not to say that Tesla will not ultimately live up to expectations – but it does put into perspective the risk of banking on these future returns.

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Charting the Next Generation of Internet

In this graphic, Visual Capitalist has partnered with MSCI to explore the potential of satellite internet as the next generation of internet innovation.

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Teaser image of a bubble chart showing the large addressable market of satellite internet.

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The following content is sponsored by MSCI

Could Tomorrow’s Internet be Streamed from Space?

In 2023, 2.6 billion people could not access the internet. Today, companies worldwide are looking to innovative technology to ensure more people are online at the speed of today’s technology. 

Could satellite internet provide the solution?  

In collaboration with MSCI, we embarked on a journey to explore whether tomorrow’s internet could be streamed from space. 

Satellite Internet’s Potential Customer Base

Millions of people live in rural communities or mobile homes, and many spend much of their lives at sea or have no fixed abode. So, they cannot access the internet simply because the technology is unavailable. 

Satellite internet gives these communities access to the internet without requiring a fixed location. Consequently, the volume of people who could get online using satellite internet is significant:

AreaPotential Subscribers
Households Without Internet Access600,000,000
RVs 11,000,000
Recreational Boats8,500,000
Ships100,000
Commercial Aircraft25,000

Advances in Satellite Technology

Satellite internet is not a new concept. However, it has only recently been that roadblocks around cost and long turnaround times have been overcome.

NASA’s space shuttle, until it was retired in 2011, was the only reusable means of transporting crew and cargo into orbit. It cost over $1.5 billion and took an average of 252 days to launch and refurbish. 

In stark contrast, SpaceX’s Falcon 9 can now launch objects into orbit and maintain them at a fraction of the time and cost, less than 1% of the space shuttle’s cost.

Average Rocket Turnaround TimeAverage Launch/Refurbishment Cost
Falcon 9*21 days< $1,000,000
Space Shuttle252 days$1,500,000,000 (approximately)

Satellites are now deployed 300 miles in low Earth orbit (LEO) rather than 22,000 miles above Earth in Geostationary Orbit (GEO), previously the typical satellite deployment altitude.

What this means for the consumer is that satellite internet streamed from LEO has a latency of 40 ms, which is an optimal internet connection. Especially when compared to the 700 ms stream latency experienced with satellite internet streamed from GEO. 

What Would it Take to Build a Satellite Internet?

SpaceX, the private company that operates Starlink, currently has 4,500 satellites. However, the company believes it will require 10 times this number to provide comprehensive satellite internet coverage.

Charting the number of active satellites reveals that, despite the increasing number of active satellites, many more must be launched to create a comprehensive satellite internet. 

YearNumber of Active Satellites
20226,905
20214,800
20203,256
20192,272
20182,027
20171,778
20161,462
20151,364
20141,262
20131,187

Next-Generation Internet Innovation

Innovation is at the heart of the internet’s next generation, and the MSCI Next Generation Innovation Index exposes investors to companies that can take advantage of potentially disruptive technologies like satellite internet. 

You can gain exposure to companies advancing access to the internet with four indexes: 

  • MSCI ACWI IMI Next Generation Internet Innovation Index
  • MSCI World IMI Next Generation Internet Innovation 30 Index
  • MSCI China All Shares IMI Next Generation Internet Innovation Index
  • MSCI China A Onshore IMI Next Generation Internet Innovation Index

MSCI thematic indexes are objective, rules-based, and regularly updated to focus on specific emerging trends that could evolve.

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Click here to explore the MSCI thematic indexes

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