Tesla's Market Value Beats GM's, Making It Number One Among Domestics

Steph Willems
by Steph Willems
teslas market value beats gms making it number one among domestics

Workers are likely spinning in office chairs and there’s probably a second frozen yogurt machine on its way to Fremont as you read this.

After hitting a springboard on Monday morning, Tesla’s stock market value has now surpassed that of the former top-ranked U.S. automaker General Motors. This comes just a day after the electric automaker’s surging shares pushed past Ford, placing it in the number two spot.

There’s nowhere to go except down. What, too cynical?

At last report, Tesla’s share value sat at $301.85, up from $278 at the opening bell Monday morning and way, way up from $181 just four months ago. That means a market cap of $53.08 billion for the automaker. A positive quarterly report, in which the automaker delivered a record number of vehicles, sent the stock on a steep bounce.

Last week’s purchase of a 5-percent stake in Tesla by Chinese investment holding company Tencent Holdings was another vote of confidence in the company. This is the first time the company’s shares have reached the $300 mark.

Meanwhile, GM’s flagging stock market prowess is Tesla’s gain. Its share value now rests at $34.40, for a market cap of $49.77 billion. By the New Year, GM’s stock had risen out of a trough it inhabited for most of the previous year, where it hit a low point of $27.46 per share in February, 2016. The post-recession high point for the company came in late 2013.

Of course, stock market performance is only one part of the financial picture. To date, Tesla has only broken even in two quarters, while Ford and GM rake in billions each year — preventing the need for fundraising expeditions. Tesla CEO Elon Musk also finds himself battling a growing unionization movement that could threaten his balance sheet.

[Image: Tesla Motors]

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  • Dash riprock Dash riprock on Apr 04, 2017

    "Last week’s purchase of a 5-percent stake in Tesla by Chinese investment holding company Tencent Holdings was another vote of confidence in the company" Still no more accurate today than this statement was yesterday. Tencent stated that their average cost was $218 indicating they had purchased shares on the open market well before the new share issuance To illustrate how goofy Tesla's share price/Market cap is lets look at Toyota. They have a market cap of $161 Billion vs Tesla's $49 Billion. Toyota's P/E is 9.1, based on earnings in the $16 Billion area. So, the question is how much does Tesla have to earn to have a P/E in the neighbourhood of what is considered to be the most efficient automaker? When will that level of profitability be achieved? BTW. GM has a P/E of 5.6 reflecting its less desirable status versus Toyota

    • See 2 previous
    • WheelMcCoy WheelMcCoy on Apr 04, 2017

      @dash riprock Ah, I stand corrected regarding BMW numbers. As for assets, I was thinking of the supercharger network as a key element making Tesla possible. Don't forget, a few other EVs failed to make it this far. Fisker Karma comes to mind, but there were others. From an accounting standpoint, yes, the supercharger is a cost center, but it ignores its intangible value. Clearly, I'm not an accountant. I'd be curious as to what Tim Cain wold make of all this.

  • Orick Orick on Apr 04, 2017

    I am sensing some one is doing a pump and dump before big news coming out of other manufacturers.

  • SCE to AUX I charge at home 99% of the time, on a Level 2 charger I installed myself in 2012 for my Leaf. My house is 1967, 150-Amp service, gas dryer and furnace; everything else is electric with no problems. I switched from gas HW to electric HW last year, when my 18-year-old tank finally failed.I charge at a for-pay station maybe a couple times a year.I don't travel more than an hour each way in my Ioniq 1 EV, so I don't deal much with public chargers. Despite a big electric rate increase this year, my car remains ridiculously cheap to operate.
  • ToolGuy 38:25 to 45:40 -- Let's all wait around for the stupid ugly helicopter. 😉The wheels and tires are cool, as in a) carbon fiber is a structural element not decoration and b) they have some sidewall.Also like the automatic fuel adjustment (gasoline vs. ethanol).(Anyone know why it's more powerful on E85? Huh? Huh?)
  • Ja-GTI So, seems like you have to own a house before you can own a BEV.
  • Kwik_Shift Good thing for fossil fuels to keep the EVs going.
  • Carlson Fan Meh, never cared for this car because I was never a big fan of the Gen 1 Camaro. The Gen 1 Firebird looked better inside and out and you could get it with the 400.The Gen 2 for my eyes was peak Camaro as far as styling w/those sexy split bumpers! They should have modeled the 6th Gen after that.