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Tesla Tops GM by Market Value as Investors See Musk as Future (bloomberg.com)
Tesla became the largest U.S. auto maker by market value on Monday, overtaking General Motors -- a feat that would have seemed highly improbable 13 years ago when the electric-car maker first began tinkering with the idea of making a sports car. From a report: Tesla climbed as much as 3.4 percent in early Monday trading, boosting its market capitalization to about $51 billion. The company was valued at about $1.7 billion more than GM as of 9:35 a.m. in New York. The turnabout shows the extent to which investors have bought into Musk's vision that electric vehicles will eventually rule the road. While GM has beat Tesla to market with a plug-in Chevrolet Bolt with a price and range similar to what Musk has promised for his Model 3 sedan coming later this year, the more than century-old company has failed to match the enthusiasm drummed up by its much smaller and rarely profitable U.S. peer. No matter, say investors who like the stock. Tesla is a technology player with the ability to dominate a market for electric cars and energy storage. To those same investors, GM and Ford are headed for a slowdown in car sales that will erode profits. "Is it fair? No, it isn't fair," Maryann Keller, an auto-industry consultant in Stamford, Connecticut, said of GM ceding the market-cap crown. "Even if Tesla turns a profit, they will eventually have to make enough to justify this valuation."
Yeah the Stock is severely overpriced and, as much as I like Tesla, there's no way it's value can compare to GM and Ford at the moment. We all know that, and we all know this balloon will eventually deflate. So what?
Unless someone put a gun in your head and force you to buy Tesla stock and kept them no matter what happens, this is good news for everyone. It's a proof of confidence to an emerging car maker in North America (who would have thought this would be possible in the 2000s?). Also, it send a serious message to the GM/Ford and it make them better (Ford is back on track and it's Ford Fusion is, in my opinion, the best mid-size sedan in the market, and for GM is launching the best competitor to Tesla Model 3 with the Chevy Bolt).
This is better for the car industry and it's better for the environment.
Elok
The company is grossly overvalued.
Compared to a competition which only survived due to a loan from the government?
That has to be one of the biggest scams on the planet.
Nice bubble you got there. Sure would hate to see anything happen to it.
“He’s not deformed, he’s just drunk!”
Dealers don't want to sell electric cars. EV's do not have the constant revenue stream that Traditionl vehicles have.
That's only partly true. EVs all need tires, suspension, brakes (rarely). Plus there is steady collision work, though much of that is done by independent shops.
Dealers will solve the revenue problem once they figure out they are marketing a lifestyle, not just a car. Bring on the accessories.
The real problem for the dealers, and the major automakers, is that they have no idea how to break into new markets. They survive through repeat business and stealing each other's customers. They have faced a saturated market for decades.
Still, if enough customers show up in dealers asking for EVs, they will sell them. They will have no choice. This isn't happening today in anything but tiny numbers. I'd love to hear a single story of a dealer who converted a traditional car buyer to electric--I simply don't believe it happens.
(When I bought my Volt I laid a trap for my Chevy dealer. I didn't tell them what car I wanted, instead I described all the features of the Volt without mentioning the electric drivetrain. They never suggested it. Only when I asked "what about the Volt" did the salesman start talking about it.)
On top of it having cars on the road, it's building out a nationwide network of superchargers, so it is putting in place the infrastructure that will be needed to transition to an electric car future. Unlike GM's attempts people believe in Tesla's, which is why their valuation is so high. They are doing it for real, not as a "look it can't work!" exercise like GM.
actually, in the world, the leaf IS the best selling EV. That is a fact. The interesting part is, that where Tesla sells (other than Japan), they outsell the leaf.
I prefer the "u" in honour as it seems to be missing these days.