November 27th, 2020 by Johnna Crider
Tesla, a company focused on sustainability and renewables, is now the 6th most valuable company in the United States. It just overtook Warren Buffet’s Berkshire Hathaway, Inc’s market cap. Tesla’s market cap reached $555.24 billion today and only trails Apple, Microsoft, Amazon, Alphabet, and Facebook. Apple is the most valued, with a market cap of $1.98 trillion, and following Apple is Facebook at $788.8 billion.
Since it was announced that Tesla would be added to the S&P 500, Tesla’s market cap has gained $168 billion, the proverbial icing on the cake if 2020 was edible. Despite everything else, this year was Tesla’s year, as it not only survived the pandemic, but even thrived during it. Its market cap is larger than Toyota’s, Ford’s, and GM’s combined.
Importance Of A Sustainability-Focused Company Being Highly Valuable
Some may take “sustainability” as a cute buzzword that is overused, but it’s something that is truly important in terms of humanity’s survival. And this is Tesla’s actual focus, not a marketing ploy. An electric vehicle doesn’t require gasoline or diesel, and can even run on electricity generated from Tesla solar panels or a Tesla solar tile roof.
We simply cannot maintain our quality of life as a human species, the diversity of life on Earth, and the ecosystems we are accustomed to unless we fully accept that we need to become sustainable. Rather than being a side note or even a large division of Tesla’s business, the ideal of sustainability is the driving force behind the company itself.
The fact that Tesla’s value is skyrocketing this year shows that many are taking the idea of sustainability seriously. I remember back in high school when this topic would come up — I’d feel helpless. Sure, we’d recycle and reuse items such as plastic silverware, but when other people just litter, or simply don’t care, it’s disheartening. And that’s just stage one. Then there was all the pollution from cars, power plants, and factories. However, Tesla’s value is showing that people actually do care, and you can build major companies centered around the ideal of sustainability. Tesla’s core mission is all about sustainability.
Tesla has shown the world that if you create a product that is focused on solving the problem of climate change and is really good, people will flock to that product. Many people thought the idea of Tesla was hopeless, couldn’t survive let alone thrive. They’ve been proven wrong.
Apple does want to go carbon neutral, and so do several other companies, which is a great first step. Companies, especially market leaders, need to show by example — and being more sustainable is also often good for business. But Tesla’s rise toward the top brings a whole other level of attention, empowerment, and enthusiasm for sustainability.
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