Tesla joined the $100B club, but VW is still bigger by enterprice value and will become the official global industry leader by sales for 2019

The shares of Tesla look more like Space X. The shares has skyrocketed since the summer last year, and the shares is up over 200 percent. It`s a funny story, but what`s even more funny is that Tesla joined the $100 billion club earlier this week. They surpassed Volkswagen.

The $100 billion club is measured by a market cap but if you look at sales or profit you have a different picture. But it isn`t bad to be the second most valuable global carmaker after topping the combined value of Ford and GM. Toyota is still on top with a value of $198 billion.

There is no doubt; the future is green and EV`s like Tesla will outnumber cars with fossile fuels. Musk is planning to build a new plant in Germany and started to sell from a new plant in China earler this month.

VW is still bigger by enterprice value and they will become the official global industry leader by sales for 2019. In a speech, Chief Executive Herbert Diess urged his executives to focus on profit rather than sales.

The EV industry have huge challenges. Battery technology is very expensive. So are R&D and all the factories they are planning build. On top of that you have all the workers. GM`s battle with the United Auto Workers union last fall illustrated how costly the process of winding down factories can be for companies too.

So far, the valuation have been bumpy and it seems like it will remain bumby. We saw a dip on Friday after a wild speculative ride.

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