Tesla Overtakes Ford In Market Capitalization

April 5th, 2017 at 12:23 am

It may seem like a long journey for Tesla as it tries to become a relevant player in the market for cars. It recent rise is surely making it noticed, especially in the stock market. The driver in the electric vehicle market has recently seen its stock rise. Not only that, Bloomberg has reported that Tesla has overtaken Ford Motor Co. in terms of market value.

Tesla shares has climbed as much as 5.8 percent that saw its capitalization move up to around $48.2 billion. This is $3.1 billion more than Ford, the number two car maker in the US after General Motors Co. It may seem mind boggling to some as both companies are quite different in comparison. For one, Tesla was able to deliver 80,000 electric cars last year. Ford, on the other hand, sold around 6.7 million cars. Such a comparison, therefore may not tally for some people.

But then, there are other factors that are being considered when it comes to determining market valuation. There is the growth potential for example. The fact that the company expects to produce up to 500,000 cars by year 2018 signifies that Tesla is expecting growth in the coming years. Elon Musk has been able to convince a lot of people that electric cars are the future, that Tesla itself has been able to lead the revolution towards making electric vehicles popular. Other companies have tried before but failed. But with keen foresight as well as better technology, Musk has been able to steer Tesla to where it is today.

There is a bright future indeed for Tesla. Considering that its stock price is growing only shows that investors are attracted to what the company still has to offer. And to think that Tesla’s electric cars are still considered as luxury vehicles, there is still that untapped market for consumer electric cars that Tesla has still to break into. These are just a few of the reasons why Tesla ha slowly become a more attractive company among investors.


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