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Tuesday, April 11th, 2017

Tesla becomes most valuable U.S. car maker, edges out GM

Author:     Noel Randewich
Source:     Reuters
Publication Date:     Mon Apr 10, 2017 | 12:38pm EDT
 Link: Tesla becomes most valuable U.S. car maker, edges out GM
Stephan:   Here is some very important economic news, although it doesn't seem to be getting much coverage except in the business press. I take this as an important, good news, benchmark on the transition out of carbon energy, particularly since Tesla has yet to make a profit.

A Tesla Model S charges at a Tesla Supercharger station in Cabazon, California.
Credit: Reuters/Sam Mircovich

SAN FRANCISCO — Tesla Inc (TSLA.O) on Monday briefly became the most valuable U.S. car maker, reaching a market capitalization of as much as $51.105 billion, higher than General Motors’s (GM.N).

Helped by an analyst’s recommendation, the luxury electric car maker’s stock rose as much as 3.15 percent to a new record high of $313.73, and its market value was at one point larger than GM’s, which was $51.095 billion, before it dropped behind again.

Over the past month, Tesla has surged 35 percent as investors bet that it and Chief Executive Elon Musk will revolutionize the automobile and energy industries.

Tesla’s market capitalization is now equivalent to $102,000 for every car it plans to make in 2018, or $667,000 per car sold last year. By comparison, GM’s market capitalization is equivalent to $5,000 per car it sold in 2016.

Proponents believe Tesla will become a carbon-free energy and transportation heavyweight and they argue its valuation is reasonable based on long-term […]

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2 Comments

  1. skhovland on Tuesday, April 11, 2017 at 5:31 am

    Hot air. Solar City is bleeding cash. Supply of lithium is limited.

  2. Mark R on Tuesday, April 11, 2017 at 6:48 am

    Not sure that market cap is the best measure of real value. That said I wish Tesla success in paving the path toward a different automotive future because the dinosaur legacy auto corps aren’t likely to do it without having their business models threatened.