Tesla’s market capitalization skyrockets to more than Ford and GM combined

Tesla’s market capitalization skyrockets to more than Ford and GM combined
Written by:
Michael Harris
March 11, 2020
  • Tesla's market value skyrockets to more than Ford and General Motors combined.
  • Tesla's stock is currently exchanging hands around $490 per share.
  • Share prices have more than doubled for Tesla in the past three months.
  • Daimler, BMW, Volkswagen, and GM plan to challenge Tesla in the league of electric cars.

Tesla Inc is reaching new heights in the stock market. It has surpassed the market values of Ford Motor Co and General Motors Co combined for the very first time.

On Wednesday, the car manufacturer saw its stock gain around 5% to $492.14 per share that recorded its market capitalization at $89 billion, marking $2 billion more than the combined worth of Ford and GM.

Owing to Tesla’s timely deliveries of the vehicles in the fourth quarter; a figure that largely exceeded the expectations along with the Shanghai GigaFactory 3 contributing to an increase in production, share prices for Tesla have more than doubled in a short period of three months.

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Mainstay Capital Management Says That Investors Still See Tesla As A Tech Giant

Mainstay Capital Management’s chief investment strategist, David Kudla, commented on the recent hike in Tesla’s stock and highlighted that the company has always been taken as a giant of the tech industry. In order for it to maintain the current value, it will have to be recognized as an electric car manufacturer.

The Silicon Valley carmaker’s success under Elon Musk, the Chief Executive, has surpassed many doubts that skeptics previously had. He has defied many assumptions of being overtaken by other automakers such as Ford and GM. A few of the investors and analysts, however, are still skeptical about the company’s ability to be consistent in delivering cash flow and profit.

The restored confidence of the Tesla investors, according to the experts, stems from the company reaching a market value of more than its U.S rivals, Ford and GM, combined, while it only delivered 367,500 vehicles last year against over 2 million deliveries for each of its competitors.

Daimler, Volkswagen, BMW, GM To Challenge Tesla In The League Of Electric Cars

On the other hand, other car manufacturers are currently trying to develop their electric cars of the same caliber as Tesla in terms of technology, style, and performance. Amongst these, Daimler, Volkswagen, and BMW take the lead while GM plans to introduce electric SUVs that are likely to step up the competition for Tesla in the upcoming months.

Audi, Porsche, and Jaguar have all tried but failed to emulate the success achieved by Tesla Inc. Contrary to Tesla, GM and Ford have had a turbulent last year in terms of sales. While Ford still managed to print a 10% rise in the stock market in 2019, GM remained flat on average. As per the car manufacturers, the U.S – China trade war weighed on the investors’ sentiment that translated into reduced sales for the two auto giants.