Tesla Now the 6th largest automotive firm
Overview : Tesla Market Value Surpassed all US auto firms
Last week Tesla surpassed Ford and now GM. The parties going on at Elon’s estate must be insane at the moment. Tesla market capitalization is now up to $51 billion, recently surpassing GM which is at a little over $50 billion, both about $6 billion above Ford.
This market value might be confusing, GM is said to profit 9 billion this year, while Tesla is projected to lose 1 billion. Furthermore they lost 773 million last year and had only 2 profitable quarters in the company’s history. In addition, they only sold around 75,000 cars while GM sold 9.8 million, their growth is otherworldly.
Perhaps investors see the potential that the company holds, as cars are increasingly becoming more and more electric. While full electrification of the car world is still far away, Musk’s company already has the infrastructure, while other manufacturer do not.
Some may think the company is far overvalued but the rise of the value reflects the future.
TSLA stocks have a hit a new high of $313.73, which is a healthy 3 percent increase. The market value is expected to further increase with the release of their new entry level car, the Model 3. This $35,000 model is aimed at the mass market and it will arrive later this year.
Tesla is now the 6th largest automotive firm, only beaten by Toyota, Volkswagen, BMW, Daimler and Honda. We expect them beat these competitors very soon.