Tesla’s Stock Market Value Trumps GM and Ford Combined
Tesla is on a bit of a roll these days. With a 4-percent increase yesterday, the company’s stock hit a record high with a market capitalization of $88 billion USD.
Believe it or not, people, that is $2 billion above the combined stock market values of General Motors ($49 billion) and Ford (37 billion).
After posting a profit in the third quarter of 2019, Tesla was able to meet the annual sales forecast made by CEO Elon Musk with 367,500 units sold globally (meanwhile its two American competitors respectively achieved 2.88 million and 2.41 million sales in the U.S. alone).
What’s more, the first Tesla cars made in China were delivered to customers a few days ago and pretty much everything is set for the company to enjoy sustained growth in the world’s largest EV market—where GM and Ford sales are falling.
As a result, Tesla's stock has nearly doubled in the past three months.
Investors’ confidence has probably never been this high, though many remain cautious and prefer to wait until Tesla shows an ability to consistently deliver profit—and Musk shows he can stay away from controversy.
From the large Model S to the compact Model 3, production delays and other logistics problems have been pretty common for Tesla up to now. Will it be the same for the Model Y, which is scheduled to hit the assembly line this summer? Time will tell.