Elon Musk’s Tesla has passed General Motors to become America’s most valuable carmaker, according to reports.
To those same investors, GM and Ford are headed for a slowdown in car sales that will erode profits.
Tesla usurped GM a week after conquering Ford and spurring debate over the relative value of Musk’s company compared with some of the world’s top-selling automakers.
Assuming Tesla closes at a higher valuation than GM, Bloomberg said, it will rank the sixth-highest valued carmaker by market cap, behind Toyota Motor, Daimler, Volkswagen, BMW and Honda Motor.
Tesla climbed as much as 3.7% in early Monday trading, boosting its market capitalisation to US$51bn, Bloomberg reported.
as informed in 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 sold 10 million cars and Ford sold 6.7 million.
Jeffrey Gundlach, who oversees over $105 billion in assets at Los Angeles-based DoubleLine Capital, told Reuters last week: “As a car company alone, Tesla is crazy high valuation.
By comparison, GM’s market capitalization is equivalent to $5,000 per car it sold in 2016.
SAN FRANCISCO For the first time in the era of the modern automobile, the most valuable U.S. car maker is not based in Detroit.
Tesla briefly edges out GM as America’s most valuable automaker
as informed in (For what it’s worth, GM CEO Mary Barra was on the invite list as well.)
For a time on Monday, Tesla edged out GM in market capitalization to become the most valuable U.S. automaker, even though Tesla is on track to lose almost a billion dollars this year while GM is expected to make a $9 billion profit.
Jackson argued that affordable gasoline, made possible in part by America’s fracking boom, will also work against Elon Musk’s all-electric vision.
The share prices for both car companies dipped today, putting GM ever so slightly back in the lead with a market cap of just less than $51 billion.
The Model 3 is due to enter full-fledged production this summer – and Tesla’s billionaire CEO, Elon Musk, is targeting total production of 500,000 all-electric vehicles next year.
collected by :Catlin Logan