Hubris aside, the market seems to have a hypothesis: Tesla is the only car maker that can deliver profound innovation. No others come close to joining its herd.
Having delivered less than 500,000 cars in 2020, Tesla’s market capitalisation is 40.2% of its peer group’s total. As Volkswagen could sell more EVs than Tesla this year or next, potential for future market-shaking innovation not near-term volumes – remains the basis of Tesla’s stock price. This prompts two questions: Will Tesla’s long-term arc be more like Nokia’s, Apple’s or Amazon’s? and a linked question: What are the implications for all players if Apple joins the market?