Every month we look at stunning statistics from the world of sustainability. What do they mean? What is the impact for investors? Today: Tesla is now worth more than traditional carmakers.
Remember the fuss when internet companies had higher market values than the titans of traditional industries? Now the electric car maker Tesla has gone one step further by overtaking both Ford and General Motors in stock market value.
The moment came on 28 March when Tesla’s stock market value hit USD 45.5 billion, above that of Ford’s USD 45.4 billion for the first time. On 10 April, it overtook General Motors with a market value of USD 51 billion, above GM’s USD 49.3 billion.
The move shows how a start-up company can become worth more than a traditional one within the same established industry, backed by a trend – in this case, the drive (literally) to replace cars powered by fossil fuels with more environmentally friendly electric models. It forms part of wider moves to combat climate change through decarbonization.
All three companies are named after 19th century pioneers. Nikola Tesla (1856-1943) was an electrical engineer who invented the alternating current electricity supply system, while Henry Ford (1863-1947) founded the car company that bore his name. General Motors was founded by entrepreneur William Durant (1861-1947) in 1908, originally as the Durant-Dort Carriage Company, and went on to fund the development of the first consumer refrigerators.
Electric cars are part of a wider trend as automakers gradually change their business models to make less polluting cars, say Robeco’s sustainability and trends experts.
“We believe the business models of car makers will need to adapt to the potentially wide-ranging use of electric vehicle batteries, along with the rise of shared mobility solutions,” says Sylvia van Waveren, senior engagement specialist at Robeco.
“The move to more environmentally friendly cars is a major trend, as electric cars particularly appeal to younger people and millennials who want to improve society while also driving a new car,” adds Jack Neele, portfolio manager of the Robeco Global Consumer Trends Equities fund.
“It also forms part of the wider trend for start-ups to disrupt traditional industries by embracing new technology and methods.”
The content displayed on this website is exclusively directed at qualified investors, as defined in the swiss collective investment schemes act of 23 june 2006 ("cisa") and its implementing ordinance, or at “independent asset managers” which meet additional requirements as set out below. Qualified investors are in particular regulated financial intermediaries such as banks, securities dealers, fund management companies and asset managers of collective investment schemes and central banks, regulated insurance companies, public entities and retirement benefits institutions with professional treasury or companies with professional treasury.
The contents, however, are not intended for non-qualified investors. By clicking "I agree" below, you confirm and acknowledge that you act in your capacity as qualified investor pursuant to CISA or as an “independent asset manager” who meets the additional requirements set out hereafter. In the event that you are an "independent asset manager" who meets all the requirements set out in Art. 3 para. 2 let. c) CISA in conjunction with Art. 3 CISO, by clicking "I Agree" below you confirm that you will use the content of this website only for those of your clients which are qualified investors pursuant to CISA.
Representative in Switzerland of the foreign funds registered with the Swiss Financial Market Supervisory Authority ("FINMA") for distribution in or from Switzerland to non-qualified investors is Robeco Switzerland AG, Josefstrasse 218, 8005 Zürich, and the paying agent is UBS Switzerland AG, Bahnhofstrasse 45, 8001 Zürich. Please consult www.finma.ch for a list of FINMA registered funds.
Neither information nor any opinion expressed on the website constitutes a solicitation, an offer or a recommendation to buy, sell or dispose of any investment, to engage in any other transaction or to provide any investment advice or service. An investment in a Robeco/Robeco Switzerland AG product should only be made after reading the related legal documents such as management regulations, articles of association, prospectuses, key investor information documents and annual and semi-annual reports, which can be all be obtained free of charge at this website, at the registered seat of the representative in Switzerland, as well as at the Robeco/Robeco Switzerland AG offices in each country where Robeco has a presence. In respect of the funds distributed in Switzerland, the place of performance and jurisdiction is the registered office of the representative in Switzerland.
This website is not directed to any person in any jurisdiction where, by reason of that person's nationality, residence or otherwise, the publication or availability of this website is prohibited. Persons in respect of whom such prohibitions apply must not access this website.