Disclaimer

The information contained in the website is solely intended for professional investors. Some funds shown on this website fall outside the scope of the Dutch Act on the Financial Supervision (Wet op het financieel toezicht) and therefore do not (need to) have a license from the Authority for the Financial Markets (AFM).

The funds shown on this website may not be available in your country. Please select your country website (top right corner) to view the products that are available in your country.

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 product should only be made after reading the related legal documents such as management regulations, prospectuses, annual and semi-annual reports, which can be all be obtained free of charge at this website and at the Robeco offices in each country where Robeco has a presence.

By clicking Proceed I confirm that I am a professional investor and that I have read, understood and accept the terms of use for this website.

Decline
Tesla is now more valuable than Ford and GM

Tesla is now more valuable than Ford and GM

20-04-2017 | Stunning statistics

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.

  • Sylvia van Waveren
    Sylvia
    van Waveren
    Senior Engagement Specialist
  • Jack  Neele
    Jack
    Neele
    Portfolio Manager Robeco Global Consumer Trends Equities

What has happened?

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.

Stay informed on Sustainability Investing with monthly mail updates
Stay informed on Sustainability Investing with monthly mail updates
Subscribe

Why is it important?

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.

What does it mean for investors?

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.”

Stunning statistics
Stunning statistics

Every month we look at stunning statistics from the world of sustainability. What do they mean? What is the impact for investors?

Read all articles