At the end of October, Tesla became the sixth company in the world to reach a trillion dollars in capitalization. Who is the electric vehicle manufacturer next door to?
Electric car maker Tesla entered a closed club on October 26: the company’s market capitalization exceeded a trillion dollars 18 years after its founding.
Tesla became the sixth company in the world to achieve this milestone.
Which Companies Are Worth1 Trillion Dollars
In this article, we decided to see who is next to Tesla in the list of wealthy companies.
The most expensive company in the world by a solid margin, Apple is worth more than $ 2.5 trillion in October 2021.
The iPhone maker reached the $ 1 trillion mark in 2018, thus becoming the world’s first company with such a market capitalization (there was still about a year left before Saudi Aramco went public).
Two years later, Apple hit the $ 2 trillion valuations, becoming the first American company to achieve that target. It took the company another year to grow to $ 2.5 trillion. Analysts believe that Apple could reach three trillion as early as next year.
Founded in 1933, Saudi Aramco is the largest oil company in the world. The state-owned oil producer entered the exchange only in December 2019.
Interestingly, before the listing, the Saudi Arabian authorities argued that the company was worth $ 2 trillion and initially insisted on just such an estimate. But due to the dissatisfaction of investors, Saudi Aramco nevertheless agreed to hold an IPO with an estimate of $ 100 million lower.
True, the Saudis very soon achieved their goal anyway – within 5 days after the listing, the company’s value reached $ 2 trillion. The company cost about the same in October 2021.
Once upon a time, during the heyday of personal computers, Microsoft was Apple’s main competitor. Those days are long gone, but in the ranking of the most valuable companies in the world, the Windows developer continues to go right behind Tim Cook’s.
Apple hit a trillion-dollar valuation in 2018, Microsoft in 2019. The market capitalization of Tim Cook’s company reached two trillion in August 2020, Microsoft in June 2021.
As of October 2021, Microsoft was worth $ 2.43 trillion – about $ 100 million less than Apple.
If history repeats itself, then Microsoft should reach the $ 2.5 trillion milestones in the near future.
Google morphed into Alphabet in 2015 and nearly five years later, in January 2020, the company finally hit $ 1 trillion.
This happened after the change of the head of Alphabet was announced – Sundar Pichai took the place of one of the founders of Google Larry Page.
The appointment of Pichai, who had worked at the company for 15 years by that time, inspired investors, and Alphabet managed to take an important psychological mark.
In the nearly two years since then, Alphabet has come close to the $ 2 trillion valuations. At the end of October 2021, against the backdrop of good quarterly performance, the company’s capitalization rose to $ 1.97 trillion but then rolled back to $ 1.94 trillion.
Amazon was the last of the IT giants – after Apple, Microsoft, and Alphabet – to reach a capitalization of $ 1 trillion. True, the company succeeded not from the first or even the second time.
The company, which was then led by Jeff Bezos, surpassed the $ 1 trillion mark in 2018 and then in 2020, but every time within a few hours, the online retailer fell and again lost its place in the elite club.
It was possible to take the height of the company only from the fifth time – in February 2020.
As of the end of October 2021, the company, now headed by Andy Jesse, is worth $ 1.74 trillion.
And finally, the last on the list of trillionaire companies was Elon Musk’s Tesla. In this, the electric car manufacturer was helped by a deal with the electric car rental company Hertz, which ordered 100 thousand cars from Tesla.
Tesla has major differences from the rest of the trillionaires (besides being the only automakers on this list).
Thus, according to the S&P agency, the company’s shares have a rating of BB +, which is considered “junk”. That is, S&P considers Musk’s company a speculative asset, the value of which may collapse at any moment. By comparison, Apple is rated AA + by the same agency.
In addition, despite strong financial performance for the third quarter of 2021, Tesla earns far less than its neighbors on the list. So, Tesla’s revenue, according to the latest quarterly report, reached $ 13.76 billion, and, for example, Apple’s revenue for the quarter is $ 83.4 billion.
Moreover, Tesla only in July 2021 managed to show a profit for the first time in its history, excluding the sale of ZEV loans.
All this does not prevent Tesla from being more expensive than all the major automakers in the world combined.
By the way, according to some forecasts, Musk himself may become the world’s first trillionaire. Now his fortune is approaching $ 300 billion.