Just after a week of Tesla taking over Ford as US’ second-most valuable automobile manufacturer, the company rolled over General Motor’s stocks this Monday, making them the country’s top car maker. With an incredible surge in the share prices, Tesla officially closed out on Monday at $1.7 billion dollars more than General Motors, with an aggregate value of $51 billion!
While this tussle for supremacy will surely continue in the years to come, the first signs of which are GM trying to claw back with their own self-driving Cadillac, it is not a small feat since Tesla was only created in 2003 and has taken over GM with its 109-year illustrious history.
While the stock prices might indicate hands down win for Tesla, it is to be noted that Tesla is still a much smaller company than either Ford or GM. GM made about 10 million vehicles last year, compared to Tesla’s paltry sum of 76,230. Tesla’s has also been largely unprofitable because of its high-risk ventures, massive investments, and small markets, whereas GM recorded a $9.4 billion profit in 2016.
So it is fair to say that Tesla’s high market cap is an indicator of a brighter and more competitive future than their checkered past. The latest Model 3 vehicle is the prime reason behind investors’ confidence in Tesla’s stocks, which will be the company’s first car for the mass market.
Besides this, the company is also venturing into revolutionary clean energy technologies like Solar tiles and Gigafactories for electric batteries, meaning there is only one way this company is going.