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Jan. 15, 2021, 10:00 a.m. EST

The EV Industry Is Worth More Than The Traditional Automakers

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Jan 15, 2021 (IAM Newswire via COMTEX) -- Many things that were considered to be impossible actually happened in 2020. One of them is that electric vehicle makers became more valuable than traditional automakers and by about by about $100 billion, according to Barrons. EV makers are now worth about $1.3 trillion whereas traditional car makers combined have a market capitalization of about $1.2 trillion. This figure includes 100 auto makers around the globe with market caps ranging from $10 million all the way to Tesla's /zigman2/quotes/203558040/composite TSLA -4.84% . Based on its fully diluted share count, Tesla is worth about $1 trillion.

This feat is even more impressive if you consider that this is a much smaller industry based on actual number of cars. The last year taught us that the connection between the stock market and the economy is imprecise at best. However, the fact that technology enabled batteries to overpass ICEs is the kind of disruption that investors look for. Even though Tesla is the main contributor to the value of the EV market, the overall image is just as impressive as three of the top five most valuable are EV makers, with Tesla being followed by NIO /zigman2/quotes/204905836/composite NIO -4.07% and BYD /zigman2/quotes/200126312/composite BYDDF -2.18% . As for traditional automakers, Volkswagen /zigman2/quotes/204431732/composite VWAGY +5.31% and Toyota /zigman2/quotes/200537742/composite TM -0.25% are the most valuable ones with both undergoing serious investments into electrification.

On Friday, BMW said it aims to double its sales of fully-electric vehicles this year. Including plug-in hybrids, it aims for a 50 percent increase in sales of electrified vehicles versus 2020. It did not give sales volumes for its fully electric vehicles but in data released on Tuesday, BMW said it sold close to 193,000 electrified vehicles, including fully electric and plug-in hybris in 2020. As a reminder, Tesla delivered almost half a million all-electric models last year, which is 75% of General Motor's /zigman2/quotes/205226835/composite GM -2.66% third-quarter deliveries.

BEVs take approximately 1% of the total market for light vehicles, but the figure rises to about 3% if we include hybrid and plug-in hybrids. Why exactly it takes a relatively small market share to disrupt an industry is a bit of a mystery, but one reason is that more investment capital tends to flow in when market share come is within the 3% to 5% range. As more capital drives more innovation and improvement, investors are lured by high growth rates, bringing in even more capital and this is how success is made. Over the past year, EV makers have raised more than $20 billion in fresh capital, which is a fraction of what traditional auto companies spend on plants and equipment. However, on a per car basis, the EV industry is investing at roughly 10 times the rate of the traditional industry. Add to this President Joe Biden's aim of a carbon-free future by 2035 and the drive toward adoption of EVs which is already seeing impressive results in Europe, the all-electric future is around the corner.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: Contributors – IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact:

The post The EV Industry Is Worth More Than The Traditional Automakers appeared first on IAM Newswire .

COMTEX_377719610/2618/2021-01-15T09:59:49

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/zigman2/quotes/203558040/composite
US : U.S.: Nasdaq
$ 653.20
-33.24 -4.84%
Volume: 30.21M
March 3, 2021 4:00p
P/E Ratio
1,039
Dividend Yield
N/A
Market Cap
$658.88 billion
Rev. per Employee
$445,694
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/zigman2/quotes/204905836/composite
US : U.S.: NYSE
$ 41.53
-1.76 -4.07%
Volume: 107.86M
March 3, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$67.93 billion
Rev. per Employee
N/A
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/zigman2/quotes/200126312/composite
US : U.S.: OTC
$ 26.63
-0.59 -2.18%
Volume: 409,043
March 3, 2021 3:57p
P/E Ratio
147.21
Dividend Yield
N/A
Market Cap
$88.23 billion
Rev. per Employee
$79,687
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/zigman2/quotes/204431732/composite
US : U.S.: OTC
$ 25.17
+1.27 +5.31%
Volume: 749,867
March 3, 2021 3:59p
P/E Ratio
27.05
Dividend Yield
1.45%
Market Cap
$114.44 billion
Rev. per Employee
N/A
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/zigman2/quotes/200537742/composite
US : U.S.: NYSE
$ 148.83
-0.38 -0.25%
Volume: 377,928
March 3, 2021 4:00p
P/E Ratio
14.51
Dividend Yield
2.53%
Market Cap
$207.56 billion
Rev. per Employee
$765,642
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/zigman2/quotes/205226835/composite
US : U.S.: NYSE
$ 52.67
-1.44 -2.66%
Volume: 19.67M
March 3, 2021 4:00p
P/E Ratio
12.19
Dividend Yield
0.00%
Market Cap
$77.97 billion
Rev. per Employee
$790,226
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