88 million cars put into the market in 2016 alone. Globally. Curious how many cars Tesla produced the same time? Approximately 76,000. This is why a question arises: why Tesla was valued more and ranked higher than any of the car manufacturers in US by the Wall Street? The difference in valuation can only be answered though this simple concept: The Future. You cannot always measure and value the materialistic things, sometimes you need to value the things that cannot be objectified. Like trust, belief and hope. Tesla is a company which has a potential to change the future of transportation and we need to trust its latent capability. It is incomparable to all the other vehicle manufacturer companies.

With the advent of vehicle manufacturer companies in the 20th century, a contemporary design and value was introduced in the category of transportation with excellent features and benefits like internal combustion engine in a car. This could not have been compared to the running buggy by the carriage manufacturers of that time as they were not only entirely different but were pulled by horses and are scarce now, to be seen only as a classic model of a vehicle in museums.

The contemporary manufacturers started building their models with advanced features around internal combustion engine, forgetting about the old-style carriages. This could exactly happen again with the invention of Tesla cars. Other automobile companies could again be disrupted in their production like the carriages of old times.

As Tesla is about to bring the future of the transportation by focusing on launching electric cars. It has already tested its prototype and has been successful. The electric car is an autonomous car that will change the whole concept of a car. It has solid features that will benefit the environment as well. These cars will not infuse smoke in the environment and thus less pollution in the air. The electric cars will be smooth with no noise, fewer moving parts and will be much faster in speed in comparison to the current vehicles.

It has been prophesied by many that the new autonomous car will be the future car and will dominate the business industry of transportation even before mid-century. This new car has even acquired the battery solution with required technology which will be efficient in range with most affordable costs.

As Tesla is going to provide a new form of transportation of this century, it might devalue all the other vehicles of other companies because of the following reasons:

Foremost, the current experience and proficiency that the automobile manufacturer companies own in US, regarding the motive power and transmission of engines with internal ignition or their design and production of the entire running system of the wheels, will be useless. Even when they will wish to follow the same practice of building their own autonomous vehicles, all their expertise and professional knowledge will not benefit them. Even their supply chain is not appropriate in this regard. Soon, these traditionally producing car companies will face a big burden of the company loss and devaluation.

Secondly, even though the general vehicles manufacturer is 1000 times bigger than Tesla, they do not have the skill or committed share of money for the electric car ecosystem. Tesla has a commendable legacy. It has invested more than an entire automotive industry in the Gigafactory for Lithium/Ion battery, its production, output and its design of electric drive train.

Third, this future car by Tesla is beneficial in so many ways other than its notion of being, autonomous and electric. It is automated with several types of advantages at various levels:

  • If there is a blind corner or a spot while you are driving the car, it will sense it and will warn you against it.
  • You have a shared amount of control over the car. You can steer it yourself but it will automatically monitor your speed and will keep you at a firm number.
  • At this level, your vehicle takes the control over all the functions and you can only disrupt its function if it’s failing to perform.
  • You do not have to be active all the time towards the road. You can text, watch a movie or be passive and let your vehicle handle the ride for you and manage emergencies if any arises. It will warn you if your attention is required in any situation.
  • This is a complete autonomous level where you can let it drive and keep you safe too while you could be sleeping in the backseat.
  • Fourth, most of the car manufacturers of today are efficient in one specific model only. They have their own designs, processes, supply chain and performance indicators for the set model. But if they want to follow the development of new electric cars, they cannot produce or even manage the transition at all.