Tesla new Volkswagen General Motors autonomous cars rivals - Tesla, facing its biggest challenge: the acceleration of Volkswagen and General Motors in electric vehicles and the new rivals in the autonomous car test its progression in the stock market.

Tesla has gone in just 5 years from being one of the companies discarded by Wall Street analysts to grab much of the attention of the investment community.

During that period, Tesla shares skyrocketed from around $ 40 (33 euros at the current exchange rate) per title to the all-time highs of $ 900 (744 euros) last January, representing a return for the shareholder 20 times higher than that of Amazon, Apple and Alphabet.

But, since then, Tesla has lost almost a third of its market capitalization. Today, it trades slightly above $ 600 per share and bearish pressure grows as the focus shifts from high-growth technology to cyclical values that benefit from the economic revival, as is the case with banks.

Tesla new Volkswagen General Motors autonomous cars rivals

In addition, a series of recent negative reports about Tesla sales in China and the withdrawal of some vehicles have raised the pressure.

Investors who lost the boat last year, when Tesla recovered more than 700% in the markets, wonder if this is a good time to bet on the company in the face of recent declines or if the electrification plans of traditional automakers could put Tesla's business in check. In fact, companies such as Volkswagen or General Motors have experienced the opposite route to Tesla on the parquet so far in 2021.

Initially, Tesla bassists argued that electric vehicles would have a hard time reaching a massive audience. That, in turn, fueled the narrative that the company led by Elon Musk could never sell enough cars to make a profit.

But Tesla not only proved them wrong, but also contributed decisively to kick-start the electric car revolution that is now advancing by leaps and bounds.

Ironically, Tesla's success could in turn be the beginning of its failure.

Tesla new Volkswagen General Motors autonomous cars rivals

Traditional car brands like General Motors, Ford and Volkswagen are investing billions in electric vehicle manufacturing with the goal of beating Tesla on their own turf.

According to Reuters, General Motors boosted its spending on electric and autonomous vehicles in the second quarter of the year and advanced plans for 2 battery plants on American soil.

The # 1 US manufacturer will spend $ 35 billion until 2025 on the production of electric vehicles, an increase of 75% over the figure it handled in March 2020, before the pandemic caused the closure of factories.

” As a growing number of long-standing automakers jump on the electric vehicle train, Tesla risks losing its first-mover advantage, " RBC Capital experts say in a recent note.

Tesla new Volkswagen General Motors autonomous cars rivals: After all, these companies have decades of experience in the production and sale of vehicles.

Meanwhile, in China, Tesla faces upstart Nio and Xpeng. These competitors are investing heavily to increase their market share and some might be better positioned than Tesla to meet the needs of Chinese consumers.

In addition, beyond electric vehicles, complications are multiplying in the autonomous vehicle segment. For example, Honda launched a new car with the first level 3 autonomous driving technology in early March, while Mercedes-Benz will launch its own car later this exercise.

” While these newcomers may not have as much data on autonomous driving (compared to Tesla), they are still serious competitors in this particular technology race, " Goldman Sachs says in a report.

This could suggest that the advantage of Tesla, whose autonomous driving system is only certified as a level 2 autonomous product for regulators, is probably not that great.

Tesla new Volkswagen General Motors autonomous cars rivals

The bears point out that Tesla's valuation does not seem to be correlated with the real world. At $ 572 per share, it trades at 17.6 times its sales. General Motors quotes less than 1 time your billing.

In other words, investors are relying on Tesla's potential to reap success in the electric vehicle business and alternative activities.

For most of its 18 years of existence, Tesla has not been profitable. That all changed last year, when it announced its first annual profit thanks to a 28% increase in revenue. To reach that level, it sold almost half a million vehicles, the highest figure to date.

Tesla new Volkswagen General Motors autonomous cars rivals: Although 2020 was a solid year, Tesla believes 2021 will be even better. And so far, it has been so. In the first quarter, the company broke new records in production and delivery of vehicles. Revenues skyrocketed 74% year-on-year.

” When it comes to Tesla, it's important to see the big picture: the company may be leading the electric vehicle (EV) market, but its share of the global automotive market remains very low, " says in a report Cathie Wood, an analyst at Ark Investment. "As a context, automakers sell between 70 and 80 million new vehicles worldwide each year, while Tesla sold almost 500,000 cars in 2020, which means a market share of less than 1%,” he adds.

Although electric vehicles are now a seemingly unstoppable trend, most modern cars still run on an internal combustion engine (ICE). ” As a leader in this industry, Tesla is poised to move forward with the tailwind of electric vehicles, increasing its production volume in the coming years, " Wood says.

But beyond car manufacturing, Tesla also aspires to lead emerging industries such as autonomous vehicles.

Tesla new Volkswagen General Motors autonomous cars rivals