Getting recognition on the Fortune 500 list is no mean feat for any company. Given that it is one of the major accomplishments that a company can attain, it takes a lot of hard work and Tesla Inc (NASDAQ:TSLA) has just proven that. The California-based automaker catapulted onto the Fortune 500 list alongside another 19 companies taking the 383 ranking.
Tesla was one of 20 newbies that knocked off another 15 companies from this year’s Fortune 500 listing. Six of the 20 were recent splits or spinoffs; three have been long enough in the market while two are just one year old.
But what does it take to be in the Fortune 500?
The Fortune 500 freshman class came from distinct backgrounds. They must also have cleared this year’s bar of at least $5.1 billion in annual revenue. Tesla put together a revenue of $7 billion in 2016. The company’s success has been linked to the restoration of its China operations, which came after several years of dull sales.
Despite the closure of its solar panel company SolarCity in November, the company’s electric car sales accounted for most of the gain. It’s Model X and the increased production of the Model S also played a significant role. The sales are expected to keep escalating even as the market becomes stiff. The question is, will Tesla sustain its appearance on the Fortune 500 listing?
Tesla declines a joint venture to produce cars in China
On one endpoint, Tesla acknowledges China’s role in being the world’s largest automotive market. Estimates from JL Warren Capital analysts have it that Tesla’s China sales tripled from those of 2015 accounting for 13% of the company’s global sales volume for the year. It is also likely that China will come in handy in Tesla’s goal of taking up the industry giants.
However, the automaker will not agree to any move of instituting a joint venture to produce cars in China. Sources have it that several Chinese companies have been pursuing this but Tesla has remained very adamant against it. In the meantime, Tesla’s stock closed at $359.65 witnessing an increase of $6.80 or 1.93%.
