Remember how Enzo Ferrari ignored Ferruccio Lamborghini’s idea of a supercar just because they made tractors? Ferrari did not believe Lamborghini has what it took to build a supercar. Nevertheless, Ferruccio Lamborghini did and proved the old man Enzo wrong. Now Lamborghini is one of Ferrari‘s fiercest competitors. Daimler has a similar story. Elon Musk’s unrivaled success has come back to haunt the German manufacturers as a blunder now worth $50,000,000,000 has been revealed. But, what was this blunder?

Ferrari is the first name that comes to one’s mind when talking about supercars. Similarly, Tesla has stamped its authority on the EV market as they are the first name that pops up when talking about electric cars. Elon Musk has managed to achieve what seemed to be a dream about a decade ago. The whole world is moving toward EVs with leading manufacturers like the Volkswagen group, Ford group, and Mercedes, all having an EV lineup. 

Nevertheless, Tesla wasn’t always the company we know and had its ups and downs, just like any other company. 14 years ago, in 2009, Daimler acquired a 9.1 percent stake in Tesla for $50,000,000. Elon Musk suggests that the investment saved Tesla and was a message to the world as a company with the stature of Mercedes invested in Tesla. At that time, Daimler was valued 75 times the value of Tesla. 

Daimler, however, sold the Tesla share in 2014 for a mere profit of $780,000,000. According to ukinvesting.com, Ross Gerber, co-founder and CEO of Gerber Kawasaki Wealth And Investment Management said, “Worse than Blockbuster not buying Netflix early. Daimler owned 9% of Tesla for $50 mil and sold very early on.”

While $780,000,000 is no small amount when you compare that Daimler only invested $50,000,000. But had Daimler held onto it, would’ve been over $50,000,000,000 in value at this moment. Exactly what Rodd Gerber meant when he suggested that Daimler sold it very early. 

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While the opportunity was lost, Mercedes also lost something else to Tesla recently. It was the position of the most valued Auto Brand. Tesla overtook Mercedes last month to become the most valuable Auto brand. 

Tesla overtakes Mercedes Benz to become the most valuable Auto Brand. 

Tesla overtook Mercedes and Toyota to become the world’s most valuable automotive brand. The brand value increased by 44% to $66,200,000,000. For the first time in history, a brand that does not produce an internal combustion engine topped the list. It now makes sense why all the leading automakers are moving toward EVs with plans to discontinue internal combustion engines totally in the near future. Mercedes’ brand value is down by 3% to $58,800,000,000.

According to Brand Finance, Alex Haigh, Valuation Director of Brand Finance said, “This growth in brand value is a positive sign for Tesla as it indicates that consumers are recognizing and valuing the brand more, which could potentially lead to increased sales and revenue in the future. The automotive industry is highly competitive, so for Tesla to achieve this level of growth in brand value is a noteworthy accomplishment and a testament to the value of the Tesla brand. Tesla must now work to protect this moving forward in order to build long-term brand strength.”

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What do you make of this opportunity missed by Daimler?