how is Tesla worth more then any other car manufacturer?

Question

I dont have the exact numbers, but I read that

VW sold about 12 million cars last year,

Mercedes over 2 million,

Tesla less than 1 million.

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How can there be suge a huge difference in the worth of these companies?

In: 0

Answer 1

i work in the auto industry, maybe this will help break it down. Most OEM’s have input in design and suppliers but they really only do the final assembly. Most parts are created by outside companies (IE: dashboards, doorpanels, doors, seats, windshields etc) When Musk was putting together Tesla, he couldn’t find suppliers that were up to his standard so he pulled a lot of that design and fabrication in house. Thus, his costs are probably a lot less then other OEMs and they make more per vehicle sold, not to mention the design and manufacturing equipment in house is part of the value.