Tesla marked a major milestone as it surpassed Ford in market capitalization. Automaker Tesla, formerly known as Tesla Motors, closed out the trading on March 27, 2017, with a market cap of a whopping $45.47 billion while Ford had dropped to around $45.35 billion.
From Wall Street's viewpoint, the company led by Elon Musk is considered now as a more valuable car manufacturer than the Ford Motor Company which is over 100 years old. Tesla has been trailing Ford's market capitalization for about a month.
As of February 28, FM stock price dwindled from $12.53 a share to $11.46 as of yesterday's trading while Tesla's stock price rose from $249.99 to $270.22 in the same time period. The market cap serves as the overall value of a firm/company's outstanding stock. Tesla's skyrocketing figure reveals that the investors of the company are pleased with how the company is performing so far, but it doesn't mean that it has become a much bigger company than the Blue oval in the real sense.
Furthermore, Tesla only offered 2 releases with a third one in production, compared with the Blue Oval that built hundreds of automobiles in factories located around the world and is currently employing thousands of people. The EV maker has not produced yet a full year profit however it was in the black during the 3rd quarter in 2016. Ford delivered an estimated 820,799 units of the F-series pickup in the US last year and 2,502,973 automobiles around the country, in stark comparison with Tesla, which only released 76,20 total vehicles all around the world in the same time period.
Nevertheless, the recent hike in Tesla's stock price has a direct connection with Elon Musk's latest announcement regarding the Model 3's development, Inside EVs exclaimed. The Tesla's head honcho unleashed a flurry of tweets regarding the more economical unit including a brief teaser of a pre-production going for a test run. The low pixel video doesn’t provide a clearcut look of the Model 3 but an Autopilot hardware can be observed inside the vehicle as well as some slight front end alteration. The first client deliveries of the new Model 3 are scheduled in July and production would speed up probably in September in response to the numerous pre-orders.
However, Model 3's all around specifications are still not disclosed to the public as of now. The EV maker affirmed that the 4-door can cover a range of approximately 215 miles (346 kilometers) and can speed up to 60 miles/hour (97 kilometers/hour) in more or less 6 seconds. Price tag of the Model 3's will start at an estimated $35,000.
The new Tesla product will venture into the economical EV segment with close rivalry from the Chevy Bolt. Also, the next-gen Nissan Leaf will be unveiled in September and will be made available in the public market before this year will end. The stock numbers will be possibly disputed and will not really matter to some since Tesla is not solely an automotive company anymore, but all will be forgiven if they will make good with the release of the Model 3.