Ford is the American automotive company that was founded in 1903. The company has become an international automotive giant through the years. Tesla, on the other hand, was founded a century later in 2003. The success of Tesla’s electric cars has been doubted by many as most people would never imagine a company like Tesla to overcome the traditional automotive industry. A report has appeared revealing that Tesla’s market value has exceeded that of Ford.
The market value of Tesla has been evaluated at $49 billion while Ford stands just a $3 billion below. The report leaves us with a good idea of the financial state of both the companies. Tesla made record sales delivering over 25,000 cars at the beginning of this year, and the company’s shares rose significantly. This 70% more than the sales they had made by this time in 2016. In the entire previous year, the company had sold a total of 76,000 cars.
The sales are not even remotely close to the 6.7 million vehicles that Ford sold in the same year. Ford still stands to be one of the top automotive manufacturers in the US, but the sales have dropped significantly between 2015 and 2016. Through this time, the company made a 5.8% loss is revenue. In both US and Europe markets, the company saw a decline of over 10 percent, but it did see some improvement in the Chinese market.
A comparison between Tesla and Ford may sound totally absurd, but to investors, it makes a hell lot of difference. Tencent Holdings from China had bought 5% shares in Tesla with a total worth of nearly $2 billion.
Source: Tesla
Tesla plans to reveal its most affordable car yet, the Model 3 this year. With a base price of $35,000, the car will cost significantly less than the Model X and Model S. It will also be less costly than other comparable automobiles in the market. Ford’s latest F-150 Raptor begins at a price of nearly $50,000.
Source: Car and Driver Blog
Tesla, despite its success and market value, is considered to be a company somewhat in its infancy. We have to wait and see how well it manages to rise to the top both in popularity and sales.