Three years ago, Tesla was not featured in the FutureBrand Index, our annual global perception study of the world’s leading companies by market capitalisation. Debuting in 2020 at 23rd position, the electric vehicle trailblazer climbed 9 places to rank 14th in our latest 2021 FutureBrand Index. And, this week, Tesla has alsomanaged to break the $1tn valuation barrier after car rental company Hertz placed a $4bn order for 100,000 cars as part of an ambitious plan to electrify its fleet.
The market value milestone, albeit groundbreaking, shouldn’t come as a surprise.
That’s because, as seen in the FutureBrand Index 2021, today’s most thriving companies are those prioritising innovation to impact individual well-being and drive change for good at scale – an agenda consistently pushed by Tesla in the last few years, with substantial initiatives particularly in the climate change front.
The company has positioned itself as a model for sustainable leadership, appearing in the Top 5 companies perceived to be enabling and having a positive impact on our environment and future by respondents in the FutureBrand Index 2021. This goes beyond investing in electric travel – Tesla also recently halted the use of Bitcoin to pay for its vehicles due to the environmental impact of using the currency, with plans of resuming crypto transactions only when mining transitions to more sustainable energy solutions. The significance of the statement cannot be underestimated, resulting as it did in a 5% drop in Bitcoin’s value minutes after the announcement.
This year’s FutureBrand Index also featured Tesla in the Top 5 companies that are perceived to be moving ahead, meaning they have a strong purpose and a clear vision for the future. As an innovator in deploying artificial intelligence for in-car hardware and software integration, Tesla has had a single-minded vision for autonomous and electric vehicle use since day one.
While it’s hard to predict Elon Musk’s next steps, it is safe to say that in order to remain future-proof and keep driving relevance, Tesla – and every other business out there – will need to continue investing in products and services on which human quality of life and well-being can thrive into the future.
The good news for investors is, it already seems to be on that trajectory.