In the last two weeks, I have been using different brands in Tekedia Growth Hour – private Tekedia Mini-MBA corporate session – to explain why brands must evolve on how they engage with markets. In the past, the mantra was this: I will just go and execute, and the numbers will do the talking. Interestingly, you can execute, but the numbers will not help you. Simply, how you make money and where you make money are more important than the actual numbers on the balance sheet and P&L.
Tesla is a car company which sells “software subscription” and emission credits, and makes all its competitors look lost, even though most are delivering “better automobile numbers”; Toyota sells more than 10 million cars than Tesla, but Tesla is valued at close to 2.5x.
Think about it: how can you make a profit of $721 million and worth over $100 billion more than someone who made a profit of $32 billion? It is called perception demand and it is shaping everything in business.
It took Tesla 4x less years to reap a higher market cap than Samsung
Data calculated and analyzed by Finbold indicates that it took electronic vehicle manufacturer Tesla at least four times less years to amass a higher market capitalization than South Korea’s electronic giant Samsung. By March 23, 2021, Tesla was only 18 years old with a market capitalization of $643.10 billion, which is higher than 83-year old Samsung with a cap of $484.19 billion.
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