Ford Authority

Tesla Has A Higher Market Value Than Ford And GM Combined

Ford and Tesla are set to fight in the electric vehicle market, with all of Tesla’s offerings being pure electric rides and Ford’s Mustang Mach-E coming soon. The Mach-E will be the first electric SUV for the automaker and will battle the Tesla Model Y and Model 3. Many expect Ford to do well with the Mach-E thanks to the Ford dealer and service network. Mach-E orders at dealers have been strong. Investors are still backing Tesla, with the company hitting an all-time high market value recently.

Tesla stock closed at a record of $492.14 per share on Wednesday, a gain of nearly 5 percent. That stock price saw the company with a market capitalization of almost $89 billion. To put that number in perspective, Ford’s market cap was about $37 billion, and GM’s was about $50 billion. Add those numbers together, and Tesla had a higher market cap, by $2 billion, than Ford and GM combined.

Tesla’s significant gain came thanks to a surprise Q3 profit combined with the progress at Tesla’s new Chinese factory. The automaker also had higher than expected vehicle deliveries in Q4 2019. All the good news has seen Telsa stock more than double in the past three months. Some Wall Street insiders say that there are some problems Tesla has to face, such as what its sustained profitability looks like. Analysts also want to know when Tesla will start to be valued like a car company and not a tech company.

While Tesla has more market cap than GM and Ford combined, it’s business is only a fraction of what the two established automakers boast. In 2019 both GM and Ford delivered over 2 million vehicles each. Tesla, on the other hand, only delivered 367,500 vehicles.

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Source: Reuters

Shane is a car guy with a fondness for Mustangs and off-roading.

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  1. Martin Scott

    It’s sort of crazy to think that 2 companies that produce annually over 6 million vehicles each with hundreds of billions in sales, combined employ over 1 million and indirectly 8 to 10 times that amount in oem suppliers and dealers are worth less than some tiny car company. Nothing against Tesla, I admire the innovation, foresight, technology but let’s be frank, the combine brain power of every major automaker in the world is no match for Tesla. They will catch up in short time. some will surpass while others will simply coast. There is not a single thing that Tesla is doing that could be considered “magic”.
    It’s a bit of a slap in the face to every single Ford and GM employee. It’s the business community telling those towns and small cities with car plants that they are worthless. It’s the business communities telling the car companies “you’re building the wrong car”. Yet 70million are built annually and there is one in their driveway as well as yours and mine.
    The things we do for money

    1. Nate

      Of course it’s crazy, it’s the stock market.
      It’s often disconnected from reality.

      1. Martin Scott

        Agree 100%
        It’s anticipation based on hype. It’s greed !

  2. charles

    Not drinking the Koolaide on the overated Tesla….what 5 quarters of profits since its inception?….now all the big three and other traditional car companies are starting to get serious in electication of vechicles…..and they have the manufacturing plants …and build trucks and cars…which are the hot sellers…Tesla main focus on cars….Tesla wll have more competition than it can handle..if say Ford was doing what Tesla is now….all the Wall Street crowd would be…asking…when are your going to build trucks and suvs.?…you got more competiton ..not made a profit since inception..nit piting everything it does,,

  3. mike sollenne

    investing in electric cars is a giant mistake…making them is even a bigger mistake

    1. Martin Scott

      Why would you say that? By the way, the folks at Tesla can think of a trillion reasons as to why you’re wrong.


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