Tesla Sits Behind General Motors As Most Valuable U.S. Car Company11
Say what you will about Tesla and CEO Elon Musk, but the accomplishments speak for themselves. Tesla has managed to carve its own niche in the industry, despite other automakers possessing nearly identical technology, and branded itself as a “gotta have it” product amid tapering vehicle ownership in the U.S.
Tesla’s latest accomplishment saw it dethrone Ford as the second most valuable car company in the U.S. However, it still has yet to topple General Motors. Reuters reports GM remains the most valuable car company in America. GM’s market capitalization hovers at $51.1 billion, while Tesla’s sits at $49.1 billion.
Things are expected to heat up, though. Musk has hinted production for the automaker’s Model 3 will begin this summer with a starting price of $35,000 before federal tax credits. That price point undercuts the 2017 Chevrolet Bolt EV, but it remains to be seen how equipment and value stack up.
As for range, Musk also hinted the Model 3 may outdo the Bolt’s 238 miles of electric driving, potentially with a larger battery option. Previous estimates had the Model 3 arriving with a 215-mile range.
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Hard to believe seeing that Tesla has only had one quarterly profit since 2010. How can you be ranked #2 when you bleed money.
elon musk has a lot of believers. without him, tesla would be a footnote in automotive history.
with the model 3, i would think judgement day is coming.
Tesla is another media made Bubble. Instead the media should be question the market of Tesla as a bubble. Right now they building a super rich Golf Cart. Then you have Tesla pimp like Adam Jonas who works for Morgan Stanley who owns stock in Tesla. We all know nothing is fair and balanced in our media. Sunday Tesla announced it sold about 25,000 vehicles world.
The media just eat it up. Yahoo Finance that I have 20 companies on the page. The top 15 juicy stories about Tesla sales. Then finally a story about ORCL one of the 20. Monday afternoon Auto News that doesn’t show up on Yahoo Finance report that GM Canada sales were up 23% none of the TV or News wires pick up the story. Oh by the way GM sold over 30,000 vehicles in Canada in Marck
Hype. Tesla itself is a house of cards waiting to topple over. Since they’re not doing any Beta testing on the Model 3, they will be sinking or swimming very soon.
Lets remove carbon credits from the scenario and see the true value, Vespa probably have higher value then Tesla
This is awesome to hear. Tesla is definitely changing the auto industry for the better. I hope to see all other auto manufacturers including GM move toward what Tesla is doing. Soon to be autonomous driving paired with electric vehicles are the future, it will create a much safer vehicle and a more sustainable future for everyone.
By the end of 2017, GM will have given back 11 billion USD to shareholders through the share repurchase plan (5 billion in 2016, 4 billion scheduled in 2017 and another 2 billion from the sale of Opel attributed to the plan). This is really an enormous amount of money which could have gone into engineering and acquisitions, yet were given to shareholders. In addition, GM makes a yearly profit of over 10 billion USD worldwide (EBIT = 12.5 B in 2016). Yet despite such tremendous returns, the stock has not moved significantly since its IPO.
And every quarter, without exception, all financial analysts tell us they have concerns that “US car sales might level off, endangering profits of the big 3”.
At the same time, Tesla is giving no return on cash, selling less than 1% of what GM sells, and burning cash at an incredible pace. Yet it is worth almost as much as GM and has risen 40% or so since the start of the year…
And every quarter, without exception, the same financial analysts are applauding this company, and promising ever higher stock levels based on “potential extra sales”, none of which have materialized up till now.
It’s not that I think Tesla does not deserve fame and glory, because they do as they have a solid vision and focus. Plus, I’d rather see the US car industry grow than the Asian manufacturers… But every normal being should be able to see there’s something abnormal going on here: Tesla has become a religion which is auto-inflating itself. It has become a self-fulfilling prophecy. It may further go up, but there’s no way Tesla is worth the money that GM is worth at this point in time. So sooner or later, the whole thing will come under correction and potentially implode, and believers will unfortunately lose a lot of money.
It would have been a lot healthier for Tesla if the company had increased in value in function of obtained tangible results rather than wishful thinking by financial analysts. Ultimately, and sadly, they will hurt both GM stockholders for deliberately sending out fake bad news, and the Tesla stockholders for deliberately creating a bubble.
I find it hard to believe Tesla is higher than FCA let alone Ford. Those are real car companies, not a fly by night flim flam man like Tesla!
You think FCA isn’t being run on an hour by hour basis?
FCA isn’t really a ‘real’ car company, so much as it a huge echo-chamber for Sergio to bemoan endlessly about how much he would like to have more working capital by merging with other, successful, automakers.
So much for Adam Jonas of Morgan Stanley saying that Tesla is a Tech company not a Auto company. The media ate up his hype, when it looks like they are behind Ford and GM.
Based on the results seen in the chart below, Ford and General Motors landed in the top-tiered “leaders” category, meaning they scored 75 or above in both strategy and execution. Meanwhile, Tesla landed in the second tier titled “contenders” with an overall score of 64.5 and Uber landed in the third tier titled “challengers” with an overall score of 54.5.
If 2008 hit the market right now which company would make it threw?
I think the correct answer is GM!