Tesla Surpasses US$1 Trillion in Market Value
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Tesla Surpasses US$1 Trillion in Market Value

Hertz ordered 100,000 vehicles from the electric marque.

By Dave Sebastian
Tue, Oct 26, 2021 10:38amGrey Clock 4 min

Tesla Inc. crossed US$1 trillion in market value Monday, joining a select group of companies after its stock price more than doubled this past year on surging vehicle sales and rising profits.

Investors pushed the electric-vehicle maker over the line after Hertz Global Holdings Inc. ordered 100,000 autos to be delivered to the rental-car company by the end of next year, a bulk purchase that promises to expose more mainstream drivers to Tesla’s technology.

Apple Inc. Microsoft Corp., Amazon.com Inc., Google parent Alphabet Inc. are the only other U.S. companies worth more US$1 trillion. Facebook Inc. was part of the group, though its share price has since retreated. Tesla, which last week reported record quarterly profit, is worth more than the next nine largest auto makers by market capitalization combined.

“Wild $T1mes!” Tesla Chief Executive Elon Musk tweeted Monday afternoon. He added, of the Hertz order: “Strange that moved valuation, as Tesla is very much a production ramp problem, not a demand problem.”

Tesla’s stock closed at $1024.86, up more than 12% on the day and giving the company a market value of $1.03 trillion.

Tesla’s valuation has soared unusually quickly. It took less than two years for Tesla’s market value to grow from $100 billion to $1 trillion, according to Dow Jones Market Data. By contrast, it took Amazon more than eight years to cover that ground.

The run-up in Tesla’s share price has benefited Mr. Musk, the company’s largest shareholder and world’s wealthiest person. Mr. Musk’s Tesla holdings, including vested and unvested options, were worth roughly US$297 billion as of Monday, according to corporate-governance data company Equilar Inc. That is more than the valuation of Toyota Motor Corp., the second-largest automaker by market capitalization.

Hertz’s Tesla order is part of a broader effort by the rental company to give customers more battery-powered options on rental-car lots.

The Estero, Fla., company said that starting in early November and expanding through the end of the year, Hertz customers will be able to rent a Tesla Model 3 at airports and other locations in major U.S. markets and some cities in Europe.

Financial terms of the deal between Hertz and Tesla weren’t provided. Based on list prices, the cost to Hertz would top $4 billion; however, historically it is common for such bulk orders to include a discount for the rental-car company.

Electric vehicles will comprise more than 20% of the company’s global fleet with the current order, Hertz said Monday. The rental-car company said it introduced electric vehicles into its fleet in 2011.

The order represents a major chunk of Tesla’s annual production volume, which has been growing in recent years. The electric-car maker delivered nearly half a million vehicles globally last year and, based on performance through September, is in a position to deliver nearly 900,000 vehicles to customers this year.

While the Hertz deal should allow more people to drive Teslas, it comes as scrutiny of Tesla’s advanced driver-assistance features has intensified. On Monday, the head of the National Transportation Safety Board doubled down on earlier criticism, chastising Tesla for not addressing what the agency views as safety deficiencies in the company’s driver-assistance technology.

“[O]ur crash investigations involving your company’s vehicles have clearly shown that the potential for misuse requires a system design change to ensure safety,” NTSB Chair Jennifer Homendy said in a letter to Mr. Musk.

The NTSB investigates crashes and makes safety recommendations but doesn’t have regulatory authority. The agency has urged Tesla to take additional steps to limit how drivers are able to use the company’s advanced driver-assistance technology, which doesn’t make vehicles autonomous.

Tesla didn’t respond to a request for comment about the letter.

Hertz’s purchase could help elevate its profile as it anticipates relisting on a major stock exchange by the end of the year. Hertz shares, which currently trade over the counter, rose roughly 10% to $27.17.

Hertz is making the investment after emerging from bankruptcy under new ownership. It filed for bankruptcy in May 2020 as the debt-laden company suffered from a collapse in reservations.

The expansion into electric vehicles is part of what the company defines as “the new Hertz,” which focuses on electrification, shared mobility and a digital-first experience, the company said. Hertz’s new owners seek to overhaul the century-old company, implementing new software to improve inventory management and better forecast customer demand.

“Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest,” said Mark Fields, Hertz’s interim chief executive. Mr. Fields, a former Ford Motor Co. CEO, took the role earlier this month.

The company said it also has partnered with Super Bowl champion Tom Brady for a marketing campaign for the electric-vehicle rentals.

Hertz warned that efforts to electrify its fleet could be hampered by factors outside its control, such as the shortage of semiconductors and other constraints.

Tesla has a network of charging stations for its vehicles to augment those people install in their homes. Tesla users, at times, have complained about long wait periods at charging facilities.

“While we certainly have work to do in expanding capacity in some congested areas, average congestion on the network has decreased over the past 18 months,” Tesla senior vice president Andrew Baglino said on an earnings call this month. The Tesla charging network, he said, has doubled over the past 18 months and the company plans for it to triple over the next two years.

Tesla says on its website that it has more than 25,000 charging stations worldwide, principally in North America and Europe. Hertz said it is also installing thousands of electric-vehicle chargers in its network.

Reprinted by permission of The Wall Street Journal, Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication: October 25, 2021.



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Less Is More: The Case for ‘Slow Productivity’ at Work

We’re thinking about productivity at work all wrong, Cal Newport says. But how do we tell the boss that?

By RACHEL FEINTZEIG
Tue, Apr 30, 2024 4 min

You’re oh so busy. You’re on Slack and email and back-to-back Zoom calls , sometimes all at once . Are you actually getting real work done?

Cal Newport doesn’t think so.

“It’s like, wait a second, none of this mattered,” says the Georgetown University computer science professor and crusader for focus in a distracted age.

Newport, 41, says we can accomplish more by shedding the overload. He calls his solution “slow productivity”—and has a book by the same name —a way for high achievers to say yes to fewer things, do them better and even slack off in strategic doses. Top-notch quality is the goal, and frenetic activity the enemy.

This, he told me, is the thing that can save our jobs from AI and layoffs, and even make shareholders happy.

I had questions. Can we really be less is more at work, or have we grown addicted to constantly crossing endless tasks off our to-do lists? What will our bosses think?

After all, so many of us yearn for a burnout cure-all that will preserve our high-achiever status, and this isn’t the first you-can-have-it-all proposition we’ve heard. Champions of the four-day workweek promise we can ditch an entire workday just by working smarter. Remote-work die-hards swear it’s a win for employers and employees. Few dreams are more seductive than bidding goodbye to hustle culture, while still reaping the benefits of said hustle.

Newport acknowledges that saying no to preserve our productivity can be a delicate act. He knows that entrepreneurs have more flexibility, but says those of us who answer to managers can carve this out too. We might even find we have more power and value to our employers.

“You should take that value out for a little bit of a spin,” he suggests. He offers some pointers.

Less is more

The way we work now is a “serious economic drag,” Newport says. Knowledge workers have devolved into a form of productivity that’s more about the vibes—stressed!—than actually making money for the company. Data from Microsoft finds that lots of us spend the equivalent of two workdays a week on meetings and email alone.

One mistake we make, Newport says, is taking on too many projects, then getting bogged down in the administrative overload—talking about the work, coordinating with others—that each requires. Work becomes a string of planning meetings, waiting on someone from another department to give us a go-ahead.

Newport recommends giving priority to a couple projects, then bumping the others to a waiting list in order of importance. Make that list public, say, in a Google doc you share with bosses and colleagues.

“When workloads are obfuscated behind black boxes, it’s just people throwing stuff at each other, it’s very dangerous to say no,” Newport says.

If someone comes to you with more work, have them consider where it should go on your list, Newport says.

When you do say yes, double the estimated timelines you set to complete a project. That’s how long it’ll take to do it well, he says. And try what he calls a “one for you, one for me strategy.” Every time you book an hour-long meeting, block an hour for independent work on your calendar.

Be the one to trust

It’s a foreign and bracing approach for those of us who reflexively say yes to work requests. Newport’s philosophy requires transparency and confidence. Instead of “let me see how fast I can turn that around!”, try, “This request will take six hours. I’ll have that time in three weeks.”

This could be heresy at some companies. The trick is in the delivery, he says. Never make it seem like work tasks are a burden you shouldn’t have to face. Instead, stress that you’re trying to be as effective as you can for the team and the company. Be positive, and deliver on the timelines you promise. You’ll be seen as someone who’s organised and on top of your game.

We think bosses want someone who’s always accessible—fast to respond, fast to jump into action, Newport says. But what bosses really want is to know that a project they hand you will get done.

Bite-size shirking

Quiet quitting permanently is a bad idea, Newport says, but a little bit is good.

Don’t feel guilty, he adds. You’re working under a new, better system. We weren’t meant to work all out , every day, without seasonal shifts and pauses.

Pick a time—say, the month of July—to slow down. Don’t volunteer for extra work. Don’t offer Mondays as a possibility for meetings. Take on an easier project for cover.

He also recommends taking yourself out to a monthly movie during the workday. Say it’s a personal appointment, and enjoy the sense of control and creativity it brings.

You don’t have to nail a manifesto to the wall, he adds, or try to change the whole company culture. Instead, quietly carve out change for yourself.

Coming into your power

The catch: You have to be really good at the part of your job that matters. And you have to get big stuff done. Remember, this is about being a happier high performer, not slacking.

“There’s no hiding,” Newport says.

I suspect this terrifies a lot of people. They’ve gotten good at being always on and typing up yet another meeting agenda. Tackling a major project or goal is often harder, and comes without a guarantee that you’re going to nail it.

Scary or not, real work is becoming imperative. AI is coming for the rote parts of our jobs. Leaders are sussing out the “nonsense” projects and roles in their ranks as they cut jobs, Newport says. No boss wants to be left with a team of people who are aces at responding to emails.

Mastering a valuable skill puts you in control. Newport writes of people who leave corporate America behind and move where they want , working remotely as contractors, charging wild fees for fewer hours of work. The more you shed the work that doesn’t matter, and spend that time getting better at the stuff that does, the more leeway you’ll get.

“The marketplace doesn’t care about your personal interest in slowing down,” Newport writes. “If you want more control over your schedule, you need something to offer in return.”

Figure that puzzle out, and you might just be able to have it all—high achievement, and your sanity.

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Consumers are going to gravitate toward applications powered by the buzzy new technology, analyst Michael Wolf predicts

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