Well, to all those people who have been calling the fact that Tesla crossed Ford in terms of market capitalization, a mere fluke: The company seems to have hit across a whole sackful of them. Thanks to a continuation of the good run its stock has been having of late, Tesla is now worth more than General Motors. This makes the company the most valuable automaker in the whole of United States judging by the stock market standards.
Following reports that both car production and car deliveries were increasing during the first quarter of the year, Tesla managed to surpass Ford, and became second largest US car maker by market cap. This happened because Tesla stock marked a surge reaching an intraday record of $294.15. This also marked its market cap reaching a value of $47.46 Billion. Ford stock on the other hand had been trading down and its market cap dipped to $44.89 Billion. Today though, the company managed to exceed rival General Motors as well and has now occupied the top spot in rankings by market capitalization.
Tesla had a stock price of $303.89 per share equating to a total market cap of $53.06 billion. GM on the other hand was trading at somewhere around $34.40 per share, which gave it a total market cap of $49.80 billion.
Interestingly, it is Tesla’s future potential that is buoying it up to this level. The company is gearing up to launch its Model 3 electric vehicle. The vehicle is expected to come with a price tag that starts at somewhere around $35,000 in the U.S. before tax incentives for green vehicles. The company is planning to sell it in large numbers and the demand we have seen so far justifies it.
The company had already received around 373,000 pre-orders in May last year and it appears to be well on track to fulfill most of them. Meanwhile, this valuation by market capitalization is dependent upon stock value and could change anytime. As of now though, Tesla is the number one automaker in the United States.