The rise of electric vehicles is well and truly underway. With the top 5 most valuable car companies outnumbered by manufacturers focused solely on battery power.
What’s most surprising is that the old guard, like General Motors, isn’t competing with upstarts in the sector…
However, when you see who and how these new EV companies are backed, you’ll know how they’ve been able to make it into the top-5.
The top-5 Most Valuable Car Companies are:
5. NIO – $89.5 Billion (Market Cap)
NIO, is one of two Chinese companies in this top-5, and one of 3 companies which are focused on electric vehicles:
It really is a green revolution in the car manufacturing sector.
One of the reasons NIO has been able to jump ahead of major car brands like Honda, General Motors, and more, is because the Chinese government handed out billions of dollars for companies to become market leaders in emerging technology – like lithium-ion battery electric vehicles.
The company HQ is in Shanghai, and was founded in 2014.
4. BYD – $92.7 Billion (Market Cap)
The second Chinese-based company on this list is the once battery manufacturer BYD.
BYD will soon launch its operations all around the world, manufacturing electric cars powered by lithium-ion batteries. BYD is already one of Tesla’s main competitors in western markets and some predict it will rival Elon Musk’s company as the most valuable in years to come.
Like BIO, the company was subsidised by the Chinese government – but BYD also has the backing of legendary investor Warren Buffett.
3. Volkswagen – $96.7 Billion (Market Cap)
German manufacturer Volkswagen is the oldest car manufacturing company on this list and was established in Berlin, 1937:
Despite a number of blips in its history, including false advertising in recent years, Volkswagen remains one of the most valuable car companies in the world.
Furthermore, the company is expected to increase its electric car and hybrid sales from 40 percent to 60 percent by 2030, and emerge as the biggest supplier of electric vehicles in Europe.
2. Toyota – $207.5 Billion (Market Cap)
Second, on the list of most valuable car companies is Toyota. A company which used to be the boss of the car industry before the arrival of #1.
Toyota is currently valued at $207 billion but is expected to lose value as more and more electric car manufacturing companies take the market share.
The value of Toyota decreased by 8 percent in 2020 and the trend is predicted to continue in 2021. Nevertheless, Toyota is still the world’s bestselling car brand and will retain this position until Tesla makes its way to every corner of the planet.
Toyota is looking to release 500,000 electric cards by 2025, in an attempt to stop this trend.
1. Tesla – $795.8 Billion (Market Cap)
Tesla officially became the most valuable car company in 2020. Following a stock surge in January, Tesla further increased its value by 375 percent, leaving a huge gap for competitors to fill.
The electric cars by Tesla are a revolution in the car industry as more and more people are move towards EV’s due to climate change and carbon emission.
Many experts believe that Tesla will soon compel other car companies to completely leave fuel-powered vehicles and move towards the sole manufacturing of electric cars.