Tesla overtakes GM as most valuable US automaker, at least for now

“A week after overtaking Ford in market value, Tesla, the upstart electric carmaker has on Monday dethroned General Motors as the most valuable US auto company,” the Financial Times is reporting.

“Shares of Tesla jumped as much as 3.5 per cent in early morning trade, giving it a market capitalisation of $51bn and helping it briefly surpass GM’s $50.7bn market value.

“Tesla has been on a blistering run this year, with the stock up more than 46 per cent since the start of January as it continues to report strong sales growth. It delivered over 25,000 vehicles in the first quarter, up 69 per cent from a year ago.

“By contrast, GM and Ford are down 2.3 per cent and 6.6 per cent for the year to date. Sentiment for shares in traditional carmakers has been hit by lacklustre US vehicles sales this year, stoking investors’ worries that the domestic auto industry has hit a plateau following a record 2016.”

The rest of the article is here.

Author: jeffpelline

Jeff Pelline is a veteran editor and award-winning journalist - in print and online. He is publisher of Sierra FoodWineArt magazine and its website SierraCulture.com. Jeff covered business and technology for The San Francisco Chronicle for years, was a founding editor and Editor of CNET News, and was Editor of The Union, a 145-year-old newspaper in Grass Valley. Jeff has a bachelor's degree from UC Berkeley and a master's from Northwestern University. His hobbies include sailing and trout fishing.

5 thoughts on “Tesla overtakes GM as most valuable US automaker, at least for now”

  1. I find t fascinating that Tesla’s market cap matches GM’s while Tesla sold 76,000 vehicles last year with sales of roughly $7 billion at a loss of about $100 million, and GM sold 9.8 million vehicles with sales of roughly $164 billion and a profit of $9 billion.

    There is no doubt that a big part of Tesla’s market cap is the companies position as the ‘car of the future’ as fossil fuels vehicles are increasingly challenged. Still, there is something fundamentally off when a company with less than 1% of the vehicles sold and 4% of the sales of their competitor has the same market cap.

    Yes, I get it, Tesla’s are cool and everyone wants one, but really would think twice about buying stock,

  2. The thing is with Tesla, building those electric cars has found that the company has a whole other market to get into.

    “Musk believes electricity storage now looks like it could be a faster growing business, if not necessarily a larger one, than selling cars for the company. Key barriers to selling cars globally, such as inconsistent national regulations and entrenched competition, don’t exist in the stationary energy storage market. “No one is really doing it right,” said Musk about battery storage. “[Tesla’s] Powerpacks can scale on a global basis faster than the cars do. … I think the rate of growth will be several times that of the car side of Tesla.”
    “Exact sales figures were not released, but Musk said last year that 80,000 orders were placed for grid-scale Powerpack batteries, and the $40 million in quarterly sales could ramp up to “a few billion dollars” per year by 2017.”
    It sounds like that battery plant Tesla has over in Reno could have huge potential beyond the automotive battery. When those batteries in cars runs their lifecycle, they can be recycled for stationary home power storage, I’m not sure if they can be used for more demanding industrial applications.
    With this battery storage systems technology developing and the country having so much natural gas, does anybody really think coal mining is going to come back?
    June 2016 article.

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