Page 36 - Fortune-November 01, 2018
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            HIGH
            REWARDS,              SAMSUNG                  TESLA                    FACEBOOK
            REAL RISKS            BIOLOGICS                U.S. [TSLA, $257]        U.S. [FB, $151]
                                  SOUTH KOREA [$428]



         THE COMPANIESfeatured here  THIS BIOTECH manufacturer, a  ONE OFTEN-CITED statis-  FACEBOOK HAS upended the
         have great forward-looking  publicly listed joint venture of  tic encapsulates the poten-  media industry, rewritten
                                  two companies affiliated with  tial of this electric-car pio-  the rules of advertising, and
         DNA, by the metrics of the  the Samsung conglomerate,  neer: On multiple occasions  changed the way many of its
         Future50. But each of the  brought in only $400 million in  over the past two years,  1.47 billion daily active us-
         four faces legal actions or  revenue in 2017. But through  Tesla, which delivered about  ers relate to friends and fam-
         tensions with regulators  partnerships with Biogen and  100,000 vehicles in 2017, en-  ily. Even as growth slackens for
                                  AstraZeneca, it holds a stake  joyed a higher market value  Facebook’s core product, Wall
         that threaten to hamstring  in the world’s largest pipeline  than General Motors, which  Street believes its other units—
         its progress. Sometimes  for biosimilar generic drugs—  sold 9.6 million that year. In  including photo hub Instagram
         those problems are a     a pipeline that analysts believe  the most recent quarter, Tes-  and the WhatsApp messaging
                                  can generate annual revenue  la’s mid-price Model 3 ranked  service—can fuel revenue in-
         consequence of their own
                                  growth of 40% to 60% for years  for the first time among the  creases of 20% to 30% a year.
         breakneck success; other  to come. In July, South Korean  five top-selling sedans in the  Still, Facebook’s vast reach has
         times they’re the result of  regulators ruled that the com-  U.S.—a milestone in founder  magnified scrutiny of its flaws,
                                  pany violated accounting stan-  and CEO Elon Musk’s quest to  including shaky protections for
         allegations against their
                                  dards in structuring one of its  make electric vehicles ubiqui-  user data and a troubling role
         leaders. Not coinciden-  partnerships and referred the  tous and affordable. The ques-  in spreading fake news. Fears
         tally, all four have seen their  case to prosecutors. In a state-  tion is whether Musk can steer  of user backlash and tighter
         shares tumble this year—  ment, the company said its ac-  Tesla in a straight line. This  regulation have helped send its
                                  tions were legal.        fall, the SEC sued him for mis-  shares down 30% since July.
         creating opportunities for
                                  Future 50 Score: 6.3     leading investors in a Twitter  Future 50 Score: 4.7
         risk-takers.             Market value: $28.3 billion  post about taking the com-  Market value: $437.1 billion
                                                           pany private (one of numerous
                                                           impolitic Musk tweets). In a
                                                           settlement, Musk gave up Tes-
                                                           la’s chairmanship. Production  50
                                                           problems and executive turn-
         TOO FAST,
         TOO FURIOUS                                       over, meanwhile, have fueled  JD.COM
         Cofounder and                                     doubts about Tesla’s stability.  CHINA [JD, $23]
         CEO Elon Musk                                     Future 50 Score: 5.5
         has turned                                        Market value: $43.8 billion
         Tesla into one
         of the world’s
         most promising                                                             ALIBABA GETS most of the at-
         companies—                                                                 tention in conversations about
         but his public                                                             e-commerce in China, but
         behavior has                                                               JD.com has been a potent No.2.
         exacerbated                                                                The company has become a
         doubts about
         its future.                                                                $64 billion juggernaut, thanks
                                                                                    to an emphasis on “high touch”
                                                                                    relationships with its sellers
                                                                                    and a concerted effort to reach
                                                                                    neglected consumers in China’s
                                                                                    rural areas and so-called lower-
                                                                                    tier cities. Founder and CEO
                                                                                    Richard Liu has been the driving
                                                                                    force behind its success, but
                                                                                    he now faces uncomfortable
                                                                                    scrutiny; prosecutors in Minne-
                                                                                    sota are reviewing allegations
                                                                                    that Liu raped a college student
                                                                                    during a visit to Minneapolis in   T. FA LLON—BLOOMBERG V I A GE T T Y IM AGES
                                                                                    August. (Liu’s attorneys say he
                                                                                    is innocent.)
                                                                                    Future 50 Score: 3.6
                                                                                    Market value: $32.8 billion



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