According to the latest market value rankings, for manufacturers released Tuesday, Tesla (NASDAQ: TSLA) continues to dominate in overall value with a market cap of $740.58 billion (NYSE: TM). BYD (OTC: BYDDY), a Chinese electric car company, overtakes Volkswagen (OTC: VWAGY) to take the third position on the list with a total market value of $127.23 billion, the largest shift on the list.
Tesla, although being a newer company, has the potential to be more adaptive to market fluctuations. Tesla, for example, was able to overcome chip shortages in 2021 by altering some software and using alternate CPUs. Because of the diminishing market for consumer electronics chips, Tesla will have more discretion in chip purchases in 2022.
To assure lithium battery supplies, Tesla collaborated with Panasonic, LG Energy Solution (LGES), and CATL from a variety of countries. Tesla has more control over batteries than other automakers, even though battery supplies are limited.
Volkswagen, Mercedes-Benz (OTC: DDAIF), BMW (BIT: BMW), General Motors (NYSE: GM), Ford (NYSE: F), Stellantis (NYSE: STLA), and Honda are rated fourth through tenth, respectively (NYSE: HMC).
BYD, the world’s first traditional automobile manufacturer, stated on April 3 that it would discontinue selling gasoline-powered vehicles and instead focus on pure electric and plug-in hybrid engine automobiles
In May of this year, BYD sold 114,183 vehicles, an increase of 152.8 percent year over year. BYD’s sales volume has increased rapidly since last year thanks to hybrid and pure electric vehicles. In 2021, BYD’s minimum monthly sales volume was a little over 20,000 units, but one year later, it had surpassed 120,000 units.
Since Musk disclosed his attempt to buy Twitter, Tesla’s stock has plunged by more than 35%. Despite this, the market valuations of Toyota and BYD, which are ranked second and third, are only about 30% and 20% of Tesla’s, respectively.
Despite a variety of challenges in the Chinese market, such as COVID-19 limits and material shortages, BYD’s production appears to be running smoothly, and the company has beaten its predecessors, Faw-Volkswagen and SAIC Volkswagen.
BYD is now the sole Chinese manufacturer among the world’s top ten automakers by market value. While BYD’s market worth and share price have risen largely due to its automobile production, the firm also has other projects such as mobile phone components and assembly, as well as solar and rechargeable units.