In the latest instalment of our visual series on topical data themes, we look at Tesla’s market cap relative to the European “Big Five” carmakers, the average CSR spending of FTSE 100 companies versus their procurement budget and the most common reasons for a CEO to leave a company.

Has Tesla’s market cap overtaken the European “Big Five”?

Tesla’s share price has been on an incredible run, with investors buying into Elon Musk’s growth story.

Tesla’s stock rose a whopping 690 per cent last year

Efforts to decarbonise industries and the potential for electric power to help meet the goals of the Paris Agreement have provided a tailwind – along with excitement around a future ecosystem of tech-enabled add-ons and innovative potential growth business areas like SpaceX and artificial intelligence. For many, Tesla is as much a tech company as it is a carmaker.

Tesla’s stock rose a whopping 690 per cent last year, surging from $88.60 to $699.99. This made it one of the most valuable companies in the world, with its market capitalisation growing to $630 billion. That positive direction continued into early 2021, with the highest valuation reached on February 2 ($837 billion).

Figure 1: Tesla’s market cap’ growth since its inception on May 29, 2010 (US$)
Source: Eikon, Aviva Investors, as of May 11, 2021

While Tesla’s market cap has since fallen back to $606 billion, it is still significantly higher than the top five European carmakers combined (Volkswagen, BMW, Daimler, Renault and Peugeot).

Figure 2 shows how Tesla has grown since 2017. Back then, its market cap was less than a fourth of the European Big Five; it is now more than double.

Figure 2: Tesla versus the European ‘Big Five’ (market cap in $)
Source: Bloomberg, Aviva Investors, as of May 11, 2021

The halo effect: Can companies change their supply chains for the greater good?

Each year, companies establish a procurement budget; the amount available to purchase supplies or services needed to run their business.

Figure 3 shows that while the average procurement budget of a FTSE 100 company is £4 billion, the average corporate social responsibility (CSR) spend is £10 million – a ratio of 400:1.

Figure 3: Procurement budget versus the average CSR spend of average FTSE 100 companies1
The average procurement budget of a FTSE 100 company is 400 times its spending on CSR
Source: ‘Buy social corporate challenge: Year 3 impact report’, Social Enterprise UK, 2019

Viewed through one lens, this is depressing. However, it also highlights the latent power within supply chains to tackle environmental and social issues. Each firm can play a part with the suppliers above them in the value chain.

Each firm can play a part with the suppliers above them in the value chain

There are also several initiatives, such as the Buy Social Corporate Challenge, which aim to unlock the power of corporate spending to benefit wider society through sourcing from social enterprises (businesses with a social or environmental mission).

PwC, for example, buys toiletries for its employee bathrooms from The Soap Co., which makes vegan, cruelty free, natural and certified plastic-free products, as well as employing visually impaired or otherwise disabled workers in the UK.2

What are the main reasons for CEO exits?

Analysis of the departures of 7,610 chief executives from S&P 1500 firms between 2000 and 2018 shows the most common official reason given is retirement – representing around one out of two departures.

Retirement represents around one out of two departures

The second and third most common reasons come under the tags of “other” and “dismissed for job performance” – around one out of three and six CEOs respectively.

On average, only two per cent left because a new opportunity arose elsewhere. As to whether there is more than meets the eye to the ‘official line’ on an exit, that is something that may not emerge until much time has passed.

Figure 4: Reasons for CEO departures3
Source: ‘A database of CEO turnover and dismissal in S&P 1500 firms, 2000–2018’, March 9, 2021

Want more content like this?

Sign up to receive our latest data visuals.

This feature is currently unnavailable, please try again later.

Thank you for your interest. To read our latest thinking, please visit our views section.

Please enable JavaScript in your browser in order to view this feature.

If you wish to receive a printed copy of The Little Book of Data, please enter your full postal address below.

I acknowledge that I qualify as a professional client or institutional/qualified investor. By submitting these details, I confirm that I would like to receive thought leadership email updates from Aviva Investors and a copy of the latest The Little Book of Data, in addition to any other email subscription I may have with Aviva Investors. You can unsubscribe or tailor your email preferences at any time.

For more information, please read our Privacy Notice.

Important information

Except where stated as otherwise, the source of all information is Aviva Investors Global Services Limited (AIGSL). Unless stated otherwise any views and opinions are those of Aviva Investors. They should not be viewed as indicating any guarantee of return from an investment managed by Aviva Investors nor as advice of any nature. Information contained herein has been obtained from sources believed to be reliable but has not been independently verified by Aviva Investors and is not guaranteed to be accurate. Past performance is not a guide to the future. The value of an investment and any income from it may go down as well as up and the investor may not get back the original amount invested. Nothing in this material, including any references to specific securities, assets classes and financial markets is intended to or should be construed as advice or recommendations of any nature. This material is not a recommendation to sell or purchase any investment.

In Europe this document is issued by Aviva Investors Luxembourg S.A. Registered Office: 2 rue du Fort Bourbon, 1st Floor, 1249 Luxembourg. Supervised by Commission de Surveillance du Secteur Financier. An Aviva company. In the UK Issued by Aviva Investors Global Services Limited. Registered in England No. 1151805. Registered Office: St Helens, 1 Undershaft, London EC3P 3DQ. Authorised and regulated by the Financial Conduct Authority. Firm Reference No. 119178. In France, Aviva Investors France is a portfolio management company approved by the French Authority “Autorité des Marchés Financiers”, under n° GP 97-114, a limited liability company with Board of Directors and Supervisory Board, having a share capital of 17 793 700 euros, whose registered office is located at 14 rue Roquépine, 75008 Paris and registered in the Paris Company Register under n° 335 133 229. In Switzerland, this document is issued by Aviva Investors Schweiz GmbH.

In Singapore, this material is being circulated by way of an arrangement with Aviva Investors Asia Pte. Limited (AIAPL) for distribution to institutional investors only. Please note that AIAPL does not provide any independent research or analysis in the substance or preparation of this material. Recipients of this material are to contact AIAPL in respect of any matters arising from, or in connection with, this material. AIAPL, a company incorporated under the laws of Singapore with registration number 200813519W, holds a valid Capital Markets Services Licence to carry out fund management activities issued under the Securities and Futures Act (Singapore Statute Cap. 289) and Asian Exempt Financial Adviser for the purposes of the Financial Advisers Act (Singapore Statute Cap.110). Registered Office: 1 Raffles Quay, #27-13 South Tower, Singapore 048583. In Australia, this material is being circulated by way of an arrangement with Aviva Investors Pacific Pty Ltd (AIPPL) for distribution to wholesale investors only. Please note that AIPPL does not provide any independent research or analysis in the substance or preparation of this material. Recipients of this material are to contact AIPPL in respect of any matters arising from, or in connection with, this material. AIPPL, a company incorporated under the laws of Australia with Australian Business No. 87 153 200 278 and Australian Company No. 153 200 278, holds an Australian Financial Services License (AFSL 411458) issued by the Australian Securities and Investments Commission. Business Address: Level 30, Collins Place, 35 Collins Street, Melbourne, Vic 3000, Australia.

The name “Aviva Investors” as used in this material refers to the global organization of affiliated asset management businesses operating under the Aviva Investors name. Each Aviva investors’ affiliate is a subsidiary of Aviva plc, a publicly- traded multi-national financial services company headquartered in the United Kingdom. Aviva Investors Canada, Inc. (“AIC”) is located in Toronto and is registered with the Ontario Securities Commission (“OSC”) as a Portfolio Manager, an Exempt Market Dealer, and a Commodity Trading Manager. Aviva Investors Americas LLC is a federally registered investment advisor with the U.S. Securities and Exchange Commission. Aviva Investors Americas is also a commodity trading advisor (“CTA”) registered with the Commodity Futures Trading Commission (“CFTC”) and is a member of the National Futures Association (“NFA”). AIA’s Form ADV Part 2A, which provides background information about the firm and its business practices, is available upon written request to: Compliance Department, 225 West Wacker Drive, Suite 2250, Chicago, IL 60606.

Related views