American electric car designer and manufacturer, Tesla Motors Inc (NASDAQ:TSLA), changed the domain of its main website from TeslaMotors.com to Tesla.com on the 19/07/2016. This indicated that Tesla was placing less emphasis on its EV business, and looking to become more of an “full-on” clean tech/energy firm.
Furthermore, around 2 months ago, Tesla merged with SolarCity, in a deal worth $2.6 billion. The merger was executed on a share-transfer basis, with each share of SolarCity being exchanged for 0.11 shares of Tesla. CEO of Tesla Motors Inc, Elon Musk, also holds a senior position at SolarCity. Musk owns around 20% of both firms.
Tesla Motors Inc (TSLA) May Be Moving Out of EV Sector Because of Competition
Tesla Motors Inc’s (NASDAQ:TSLA) recent actions suggests that the firm is looking to decrease its reliance on the EV sector for revenue. Throughout 2016, many large car manufacturers, announced that they would be developing and releasing new electric automobiles in the coming years.
For example, VW announced that its car brands would be releasing EVs soon. It seems that VW is trying to use the EV market to improve its name and brand reputation, after the emissions scandal tarnished their brand image internationally. Tesla may still have an advantage in selling electric cars over these new competitors, but entering other areas in clean tech is wise, as it allows them to hedge and reduce their risk exposure.
Tesla’s Market Cap Remains Near the $30 Billion Level
As of the 21/09/2016, a share in Tesla Motors Inc (NASDAQ:TSLA) is currently valued at $206.64, giving the firm a market capitalization of $30.18 billion. The firm’s market cap has been hovering in the $30 billion region for several months now.
Elon Musk has previously said that the believes that Tesla could have a market cap of around $700 billion by 2025. Although their market cap is still a long way off this target, the company has been taking important steps this year to ensure the long-term success of the business. For example, they opened a Gigafactory in Reno, Nevada just a few months ago.