Now more than ever, the automobile is at the top of the global economic food chain.
We use our cars to get to work, transport our children, transport goods around the country, transport us to vacation destinations and sometimes just to transport us out of our homes for a safe, socially distant change of scenery during the coronavirus pandemic.
Millions of people view their cars as both utilitarian and a means of escapism. So it’s no big surprise that in 2019 alone an extraordinary 92 million cars were manufactured.
This infographic from Parts Geek breaks down the earnings of 19 major car companies by revenue per second!
When looking at the chart, remember that many of these companies have alternative revenue sources. Automobiles make up the core business, but for example, Honda produces motorcycles, boat engines, lawnmowers, and even personal jets.
Other car companies use accessories and licensing subsidiaries to balance out their spreadsheets. Porsche has Porsche Design, and since 2003 has manufactured a variety of lifestyle goods including eyewear, smartphones, and watches that have been sold under the Porsche name. It even has the Porsche Design Tower Miami, a residential skyscraper that features the “Dezervator,” a robotic elevator that whisks both residents and their vehicles to up to their luxurious living quarters.
Not to be left out, Tesla earns additional revenues by selling carbon credits to other carmakers that fail to meet government-imposed quotas on electric vehicle (EV) sales. Since Tesla only produces EVs, it has no need for its credits and is free to sell them. In the second quarter of 2020, Tesla earned $428 million from selling carbon credits, representing 7% of its total revenues for the period.
Source: Visual Capitalist
ABOUT MIKE MERCURIO
Michael N. Mercurio is a leading attorney in the field of mergers and acquisitions (M&A). He serves as outside general counsel in buy-side and sell-side M&A, as well as in all business law and real estate law matters. As a strategic partner to firm clients, Mr. Mercurio regularly counsels entrepreneurial individuals and assorted entities on the many challenges, issues, and opportunities companies face throughout the business lifecycle—from start-up to eventual exit.
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