Musk is the fifth richest man in the world

category:Finance
 Musk is the fifth richest man in the world


Musk became the fifth richest man in the world

With the increasing delivery of new cars and the obvious improvement of financial condition, Teslas share price has risen from $400 in early January to $1417 per share. Tesla shares rose to $2384.73% in recent years.

At present, the total market value of Tesla is $262.7 billion. Even though it fell more than 6% on Friday, the overall performance of its share price is still bright.

The astonishing increase makes Tesla more valuable and makes it surpass Toyota to become the worlds highest market value auto company.

By the beginning of the week, musk had more than $74 billion, making him the fifth richest person in the world. Ahead of musk were Amazon founder Jeff Bezos, luxury goods giant Louis Vuittons Bernard Arnault, Microsoft co-founder Bill Gates and Facebook founder Mark Zuckerberg, with assets of $189 billion, $113.8 billion, $113.4 billion and $90.3 billion, respectively.

Four consecutive quarters of profits

After hours on July 22, American Eastern time, Tesla released its second quarter results in 2020, with operating revenue of $6.036 billion and GAAP net profit of $104 million. It has been profitable for four consecutive quarters, which also means that Tesla is expected to enter the S & P 500 index.

According to the financial report, Teslas cash and cash equivalents increased by $535 million to $8.6 billion in the second quarter, and its free cash flow after deducting capital expenditure was $418 million. Tesla said that the average selling price of vehicles has decreased, but the improvement in manufacturing costs brought about by modely and the model 3 made in China, as well as the increase in after-sales software and mobile connectivity revenue, have a positive impact on profitability.

Chinas Shanghai factories are carrying the banner of production capacity. Tesla delivered 31000 vehicles in China in the second quarter, accounting for 30% of its global sales, according to the China Travel Association.

According to the financial report, Tesla still maintained a gross profit margin of 25.4% in the second quarter, almost the same as that of 25.5% in the previous quarter. With the advantages of localized supply chain and manufacturing, analysts generally give Tesla China model 3 a gross margin of up to 30%.

Tesla remains committed to delivering 500000 vehicles this year. The production line of Shanghai plant modely is under construction as planned, and the first batch is expected to be delivered in 2021. Mr musk said it would have a huge impact on the cost of the vehicle if it only purchased parts in China. In fact, the proportion of local procurement in China was about 40% at the beginning of this year, and it is now growing at a rate of 5% - 10% per month. It is expected that the localization rate of parts and components will reach more than 80% by the end of this year.

In addition, the achievements in the first half of the Chinese market and the huge growth space in the future make Tesla pay more attention to the localization strategy. In terms of product localization, Tesla continues to increase the proportion of local content, including the introduction of QQ music, iqiyi, Himalaya, bilibilibili, baidu map, etc. In terms of marketing, Tesla has settled in tmall mall, put personalized accessories on shelves, and completed the expansion in localization channels. In terms of localization of design and R & D, musk said at the recent 2020 global AI conference that Tesla is building relevant engineering teams in China. Chinas autopilot team is not only simply moving American products to China, we will do original engineering development, original design and engineering work in China. Extended reading iPhone 11 made in India for the first time can reduce import tariff by 22% and will not return to China temporarily! CEO of sailin automobile responds: cars will never be over regretted and useless city rent ranking: Guangzhou is so miserable that there are landlords who lose 80000 a month. Source: China Securities Journal Author: Cui Xiaosu song Weidong editor in charge: Wang Xiaowu_ NF

In addition, the achievements in the first half of the Chinese market and the huge growth space in the future make Tesla pay more attention to the localization strategy.

In terms of product localization, Tesla continues to increase the proportion of local content, including the introduction of QQ music, iqiyi, Himalaya, bilibilibili, baidu map, etc. In terms of marketing, Tesla has settled in tmall mall, put personalized accessories on shelves, and completed the expansion in localization channels.