Tags: tesla | ford | gm | market | value

Tesla Passes Ford, Nears GM in Race for Market Value

Image: Tesla Passes Ford, Nears GM in Race for Market Value

In this May 14, 2015 photo, Kuka robots work on Tesla Model S cars in the Tesla factory in Fremont, Calif. (AP Photo/Jeff Chiu)

By    |   Tuesday, 04 Apr 2017 10:38 AM

Tesla has passed Ford as the second most valuable car company in America on the heels of the electric car company's strong sales of its Model S and Model X vehicles.

Tesla's value has risen to $48 billion while Ford dipped to about $45 billion with shares decreasing by 3 percent following weak sales in March, CNN Money noted. General Motors leads all U.S. car companies at $50.8 billion, but its stocks tumbled 4 percent.

Honda is reportedly worth $54 billion, according to CNN Money. Tesla's stock climbed 35 percent for the year while General Motors and Ford have both dropped this year.

"Investors want something that is going to go up in orders of magnitude in six months to six years, and Tesla is that story," Karl Brauer, a senior editor at Kelley Blue Book, told The New York Times. "Nobody thinks Ford or GM is going to do that."

According to the website BGR, Tesla released delivery numbers for the first quarter of 2017 that showed it reached more than 25,000 vehicles, beating analysts' predictions of 23,000 to 24,000. The Model S accounted for 13,450 of the sales while the Model X accounted for 11,550.

Tesla's rise comes as it prepares to build its affordable Model 3 vehicle in July, Bloomberg noted.

"It's all about the Model 3 right now, but this is very good news," Ben Kallo, an analyst at Robert W. Baird & Co., told Bloomberg. "Twenty-five thousand units is the best we could have thought, and people are looking at Model 3 for growth."

The New York Times stated, though, that unit cost could continue to be a challenge in the future.

"While Tesla may enjoy the favor of investors, it still faces some daunting hurdles to reach its goals," wrote Bill Vlasic and Neal Boudette, of The New York Times Monday. "This summer, the company is supposed to start making the Model 3, a compact electric model that Tesla plans to sell for $35,000 and produce in significantly higher volumes.

"It currently offers two vehicles, the Model S luxury sedan and the Model X SUV, both of which sell for $90,000 or more when options are added in. (People who buy its cars benefit from a $7,500 federal tax credit on environmentally friendly cars, a selling point with an uncertain future)," Vlasic and Boudette added.

© 2017 Newsmax. All rights reserved.

 
1Like our page
2Share
TheWire
Tesla has passed Ford as the second most valuable car company in America on the heels of the electric car company's strong sales of its Model S and Model X vehicles.
tesla, ford, gm, market, value
395
2017-38-04
Tuesday, 04 Apr 2017 10:38 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved