"By market value at least, the scrappy Silicon Valley upstart has become one of America’s Big Three."
States Bloomberg in a recent article comparing the value of several American automakers.
Tesla's market value has soared of late and it's likely to rise even higher when the Model 3 launches later this year. The automaker is now valued higher than Nissan and is closing in on Ford and General Motors.
Tesla Drive to Believe
"Ford Motor Co. and General Motors Co., however, are more than a century old and sell millions of cars each year, compared with Tesla’s deliveries of fewer than 80,000 in 2016.
Tesla Chief Executive Officer Elon Musk has forecast between 100,000 and 200,000 sales of the Model 3 in the second half of this year, but few analysts believe he’ll achieve even the low end of that target."
Editor's note: With an update on the Model 3 production status from Tesla's 4th quarter report on February 23rd, that 100-200k 'perfect scenerio' forecast by Musk has now come and gone. The new production ceiling number of Model 3 vehicles produced in 2017 is around the ~80,000 mark given monthly targets issued by Tesla.
Of course, we know that Tesla continues to lose money year after year, mostly due to massive R&D spending as it attempts to conquer all things related to automotive, as well as solar and energy storage in the future. But Tesla is a long term play. The company strives to become #1 in several markets and hopes to leave any competitors in its dust. As such, loses will mount until the day comes when the company either withers away or turns a massive profit.
In terms of volume, Tesla isn't in the "big boys" league...yet. But when you look at market cap, they are already there.
As of March 24th, here are the market caps of some of the mainstay automakers:
- Toyota (TM) - $165.1 billion
- General Motors (GM) - $52.75 billion
- Ford (F) - $46.3 billion
- Tesla (TSLA) - $41.5 billion
- Nissan (NSANY) - $39.8 billion
"For now, Tesla investors are in a purgatory of expectations."
"Until Tesla’s new products have the opportunity to prove themselves—the Model 3 foremost among them—uncertainty remains. Whether the intervening months are filled with unnerving financial risk or a sense of boundless opportunity depends on investor disposition—and to some extent, the momentum of the stock itself."