By on April 4, 2017

tesla factory fremont

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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16 Comments on “Tesla’s Market Value Beats GM’s, Making it Number One Among Domestics...”

  • avatar
    SCE to AUX

    I’d prefer to see TSLA at $150 with robust profits and dividends to support the price.

    • 0 avatar

      I agree. I like Tesla, but at $300 I’m not going to jump in. I’m not going to short them either. I’d hate to have been one of those guys.

    • 0 avatar

      Heh, I think I read BTSR wanted to sell his shares at $300 or thereabouts.

      But yes, what goes up must come down, and with the stock market, can go up again. It’s a wild ride, and Musk has earned the right to have a little fun with the short sellers.

  • avatar

    Oh, I think everybody’s long since shot their fanboi/hater wad over T***a. All that matters now is how the 3 does.

    • 0 avatar

      This! I’m waiting to see as well. Although to be frank Tesla could probably coast pretty easy on a mediocre product since people are so dead set against the established domestic auto companies.

      • 0 avatar

        I wonder if GM and others are letting the T***a canary flutter into the coal mine and if it survives they’ll get serious about their till now back-burnered EVs.

        The majors don’t *need* significant public adoption of an affordable EV but seem to intelligently be readying their own for the off-chance.

        • 0 avatar
          Big Al From 'Murica

          If they get serious about EVs you’ll know. They will lobby the Federal Government to invest in charging infrastructure and probably get it. That will be the death knell for Tesla since it would be doubtful they’d adopt Tesla’s standard and even Elon’s investors deep pockets are no match for how far the us government is willing to reach into the taxpayer’s pocket.

          • 0 avatar

            The government effectively already has reached deep into taxpayers’ pockets to help fund Tesla

  • avatar

    Let this be exhibit A as to how overpriced equities are right now and that the irrational exuberance party is in full swing.

  • avatar
    Master Baiter

    I’d be inclined to purchase some puts, but I suspect they are overpriced too.

    • 0 avatar

      25.5% of Tesla’s exchange traded shares are held by short sellers.
      So there is plenty of negative sentiment also.
      Will be fun to see where this shakes out.
      All my common sense tells me it’s another GoPro.
      But I’m not gonna bet much on that outcome.

  • avatar
    dash riprock

    “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

    • 0 avatar

      Tesla shouldn’t be compared to Toyota, GM, and Ford. When I see Tesla, I think niche automaker…like BMW.

      BMW has a market cap of $54B and produces about 400,000 vehicles a year. Tesla has a market cap of $49B and is attempting to produce 500,000 Model 3 vehicles. In that regard, they are in line. Granted, BMW has a P/E of 8.03, while Tesla’s is undefined; but young companies can’t be measured in the same way as mature companies.

      Also, what of Tesla’s other assets? The GigaFactory? The supercharger network? Powerwalls and Solar City? Yes, Tesla is difficult to value, and I am as confused as anyone. But I am also clear headed enough not to compare Tesla to Toyota… or GM… or Ford. We need Tim Cain!!

      • 0 avatar
        dash riprock

        BMW has global sale of over 2 Million. The BMW group nearly 2.4 Million. Tesla last year sold 84,000. Supercharger network a cost not a profit center. Solar city? Yikes what a black hole for capital. Gigafactory is an unknown. They have an agreement with Panasonic to purchase battery cells. Does this agreement benefit Tesla or Panasonic more? Yes, Tesla is more than Auto manufacturing, even though that is over 90% of its revenues, but sadly all those other parts are money losers as well.

        • 0 avatar

          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.

  • avatar

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

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