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

Steph Willems
by Steph Willems

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]

Steph Willems
Steph Willems

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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.

  • 3-On-The-Tree Lou_BCsame here I grew up on 2-stroke dirt bikes had a 1985 Yamaha IT200 2-strokes then a 1977 Suzuki GT750 2-stroke 750 streetike fast forward to 2002 as a young flight school Lieutenant I bought a 2002 suzuki Hayabusa 1300 up in Huntsville Alabama. Still have that bike.
  • Milton Rented one for about a month. Very solid EV. Not as fun as my Polestar, but for a go to family car, solid. Practical EV ownership is only made possible with a home charger.
  • J Love mine, but the steering wheel blocks dashboard a bit, can't see turn signals nor headlights icons. They could use the upper corners of the screen for the turn signals. Mileage is much lower than shown too, disappointing
  • Aja8888 NO!
  • OrpheusSail I once did. My first four cars were American made, and through an odd set of circumstances surrounding a divorce, I wound up with a '95 Nissan Maxima which was fourteen years old and had about 150,000 miles on it.It was drove better, had an amazing engine, and was more reliable than any of my American cars. This included a new '95 GMC pickup that went through five alternators in under two years while the dealership insisted that there was no underlying electrical problem while they tried to run the clock on the warranty.That was the end of 'buy American'. I've bought from Honda and VW since, and I'll consider just about anything except American now.