Tesla is a very vigorous company. Led by Elon Musk, this company has managed to leave many of its peers behind — all the while operating in a niche that was given a wide berth by many mainstream vehicle manufacturers for decades. Tesla has brought a revolution to the EV industry. Now, the company reaping the fruits of being a pioneer in the field. As per recent news from the stock market, Tesla’s market capitalization has crossed that of Ford, making the company the second largest US car maker on basis of market capitalization .
This is thanks to the fact that Tesla’s stock value increased at about the same time as that of Ford’s dropped. Tesla stock recently marked a surge reaching an intraday record of $294.15. This marked its market cap reaching a value of $47.46 Billion. Ford stock on the other hand was trading down and its market cap dipped to $44.89 Billion. The long and short of this was that the EV maker managed to surpass Ford to become the second largest car maker in the US, from the perspective of market capitalization. Occupying the number one spot is General Motors, with a market cap of $51 Billion.
We don’t have to be mystified by this reversal in fortunes. Tesla reported a surprisingly good quarter and managed to reach the high end of analyst expectation regarding car deliveries. It’s stock has gained almost 37% so far this year. Ford on the other hand, has been having troubles on a couple of different fronts and has recently been forced to recall some of its F-150 pickup trucks. The company’s monthly sales dropped by almost 7% during last month as well.
Interestingly enough, Tesla’s gains appear to be driven more by what investor’s and analysts expect from the company’s future, rather than its present performance. The company shipped less than 100,000 vehicles last year as compared to Ford’s millions. On the ground, there is no comparison. However, it is the future that investors are more concerned about and with its approach that has been revolutionizing EV, Tesla is clearly a favorite.