Tesla Inc Overtakes GM and Ford in Market Cap
BUZ INVESTORS Next for Elon Musk As Tesla Inc (NASDAQ:TSLA) races past General Motors Company (NYSE:GM) as the most valuable car company in the U.S., Tesla stock investors are over the moon. The company clocked a market capitalization of over $50.0 billion as TSLA stock ended at $312.39 on Monday. While the media, analysts, and investors are busy analyzing the rise of this cult stock, let us go through what is causing the rally and what comes next once the exuberance and momentum surrounding TSLA stock slows down.
The rise in Tesla stock is due to the future potential of Tesla Inc, since the current valuation cannot be justified based on the past performance of the electric car maker. Tesla’s performance pales in comparison to that of GM and Ford Motor Company (NYSE:F), which are profitable companies that sell millions of cars every year. Tesla sold a little over 25,000 cars in the last quarter, which was enough to spark a rally in TSLA stock as not many had expected the company to exceed the target.
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Next for Elon Musk
U.S. electric car sales accounted for 1.2% of all U.S. car sales, which is a new record for the U.S. EV market.
|Sr No||EV Model||Mar. 17||Mar. 16||YTD 2017||YTD 2016|
|1||Tesla Model S||4700||2000||8800||6000|
|2||Tesla Model X||3900||1200||7500||2400|
|4||Toyota Prius Prime||1618||7||4346||23|
|6||Ford Fusion Energi||1002||1238||2445||2751|
|9||Ford C-Max Energi||662||610||1774||1450|
|10||Audi A3 e-tron||414||332||1201||907|
|11||Ford Focus Electric||407||110||691||257|
|12||BMW X5 xDrive 40e||397||313||934||839|
|15||Kia Soul EV||171||79||440||220|
Rising Challenges for Tesla Inc and a Possible Sale?
Given the inevitable rise in competition, a good case can be made for Elon Musk to sell Tesla’s electric car business to a company that can bring strong synergy to the deal. It could be a technology behemoth like Apple Inc. (NASDAQ:AAPL), with strong financials and stronger interest in electric cars, or an auto giant like General Motors Company, with more than 100 years of experience in manufacturing automobiles.
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