Only Seven Years After Going Public, Tesla’s Market Cap Surpasses Ford

Tesla

FEB 10 2018 BY EVANNEX 29

Tesla

Elon Musk stands in front of a Model S rolling off the production line at Tesla’s factory (Image: InsideEVs)

TESLA GOES FROM IPO TO SURPASSING FORD IN VALUE IN JUST 7 YEARS [INFOGRAPHIC]

The story of Tesla is a fascinating one by any measure: a group of Silicon Valley entrepreneurs get together to start a car company, a feat that business-school professors have been using as the definition of economic impossibility for decades, and after only a few years they build a company that rivals the Big Three, and a car that earns every accolade the industry has to offer. Of course, there are several near-death experiences along the way to hold our interest.

This stranger-than-fiction story has been told in various videos and one full-length book, and pieces of it have been told in thousands of print and online articles. For those who prefer a quick, easy-to-digest format, Global Energy Metals has summarized the Tesla story in a large infographic, which comes to us courtesy of Visual Capitalist.

*This article comes to us courtesy of EVANNEX (which also makes aftermarket Tesla accessories). Authored by Charles Morris.

The Tesla saga began with the low-volume Roadster, but the startup became “a real company” with its 2010 initial public stock offering (IPO), which raised some $226 million in capital and started what was to be a stomach-churning roller-coaster ride of growth.

Tesla was the first American car company to make an IPO since Ford went public in 1956.

Tesla

Tesla’s original Roadster (Instagram: turo)

Ford was already a large and well-known company at the time, and its IPO was the largest in Wall Street’s history. In contrast, Tesla in 2010 was a tiny niche automaker that few outside the auto industry or the environmental community had heard of.

Stock market analysts were skeptical, to say the least, and short sellers (speculators who place bets that a company’s stock will decline in price) flocked to the stock (the short interest in Tesla continues to be huge, despite the fact that the shorts have lost billions).

Despite the wild gyrations that are typical of a high-flying tech stock, the trend for TSLA has been ever upward. A mere seven years after its IPO, Tesla’s market value had surpassed Ford’s, despite the fact that the older company’s sales volume is many times greater. As of the end of 2017, Ford’s stock market capitalization was $49.9 billion, while Tesla’s had reached $52.3 billion.

Tesla

A look at the surging stock price of Tesla which pulled ahead of Ford in market capitalization in 2017 (Image: Marketwatch)

A tremendous amount happened in those seven years. Tesla acquired its massive Fremont factory in a sweetheart deal with Toyota. It discontinued the Roadster and moved on to the second phase of its master plan, building two native EVs, the now-famous Model S and Model X. The two vehicles went on to win just about every award and accolade in existence, including being recognized as the “safest car ever tested” by the NHTSA and the “best car ever tested” by Consumer Reports. Over 200,000 units have been sold to date.

With partner Panasonic, Tesla built its gargantuan Gigafactory in Nevada, with the objective of reducing the cost of lithium-ion battery packs by 30%. Tesla introduced the Powerwall, a key piece of the puzzle of electric vehicles and home solar energy generation. It introduced Autopilot technology, and built out its worldwide Supercharger network. In 2016, Tesla announced the culmination of its master plan: Model 3, a mid-priced EV for the mass market. The new EV quickly racked up almost half a million pre-orders, making it arguably the most successful product launch in history.

With Model 3 now showing up on roads around the country, Elon Musk has achieved the quixotic goal that he set over a decade ago. However, the Tesla story is just beginning: in the pipeline are the Tesla Semi, a new Roadster, solar roof tiles, massive energy storage projects in Australia, Puerto Rico and elsewhere, loads more Superchargers and all kinds of nifty new features, delivered via over-the-air software updates. The future for Tesla, and for those of us who write about it, looks as bright as the California sun.

Infographic

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Written by: Charles Morris; Infographic: Visual Capitalist

*Editor’s Note: EVANNEX, which also sells aftermarket gear for Teslas, has kindly allowed us to share some of its content with our readers. Our thanks go out to EVANNEX, Check out the site here.

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29 Comments on "Only Seven Years After Going Public, Tesla’s Market Cap Surpasses Ford"

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Six Electrics
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Six Electrics

I suppose the longs are feeling the pain these days. Still, that’s no excuse for this puff piece.

mx
Guest
mx

What pain? You gave us a temporary buying opportunity.

You’re the perfect example of a short that can’t learn.
Tesla has a long track record of delivering breakthrough product.
Compare that to Ford’s latest “breakthrough”.
Hmmm… Give me a minute….

William
Guest
William

This last year Ford is giving Widows and Orphans a tidy little dividend on their equity investment. Tesla is going to do the same, when they deliver their breakthrough product in significant volume, but not this year or next.

earl colby pottinger
Guest
earl colby pottinger

Exactly, I wanted to buy more stock but it costs do much a share. But thanks the panic I was able to pick up more Tesla shares when it fell, and already it has started to go up.

Once the Model 3 three really start rolling out I expect the stock to climb a lot more.

Get Real
Guest
Get Real

And the shorts like yourself are feeling the long-lasting pain of Billions in short losses over the last decade.

Meanwhile the entire market is down and will become even more volatile as the Trumpsters and Republicons start ruining the economy and country again.

esto perpetua
Guest

Get real, not really.Market volatility is not a sign of a bad economy. After all, imagine if the stocks kept going only up with no corrections. And for your info, the Trumpsters and Republicons have delivered the best economy in decades by ANY measure, business activity and investment, employment numbers, wage increases, consumer confidence, and yes, the stock market. Bad thing left-wing myopia. There is no known cure.

mx
Guest
mx

Ford: Sat on the CMAX for 7 YEARS, and did nothing.
Oh, they made some minor modifications to the F-150.

Ford now plans to build cars in China, and then import them to the US. That’s a Huge RISK strategy. China has no track record of quality cars. Ford will attempt to survive the Tesla invasion by moving to just Trucks, and SUV’s. Remember Trucks and SUV’s have LOWER Safety Standards too.

But, this isn’t a strategy for growth, it’s a strategy for slow withdrawal from the market.

Someone out there
Guest
Someone out there

Too bad the production hasn’t surpassed Ford’s, not even close.

mx
Guest
mx

But, it will. That’s the problem Ford is making no attempt to address. And it’s reflected in it’s P/E. That’s a No Future P/E.

mx
Guest
mx

I wonder, this is Bill Ford’s third CEO pick who also, is not going to turn Ford around. I wonder if it’s time for Bill Ford, and the family to start selling out of the company, and buy Tesla.

Gasbag
Guest
Gasbag

It depends on what you’re counting production of. Tesla easily beat Ford in number of PowerPacks, PowerWalls, solar installations, and charging stations. Oh and BEVs.

Robert Weekley
Guest

Damning Truths!
Remember: some “can’t handle the truth!”
?

Pushmi-Pullyu
Guest
Pushmi-Pullyu

“Someone out there” said:

“Too bad the production hasn’t surpassed Ford’s, not even close.”

And how many more years do you think you’ll be able to truthfully say that? Hmmmm?
😀

Steven
Guest
Steven

Remind us again how many production lines Ford has around the world, compared to Tesla, and how many years has Ford been in business compared to Tesla?

I’m sure someone has the figures, but how many vehicles did Ford build from their founding to the age Tesla currently is?

Give them a break, and come back and complain when Tesla is the age Ford currently is.

Magnus H
Guest
Magnus H

All hail Elon Musk and his company!

Nix
Guest
Nix

It actually istn’t possible to directly compare F and TSLA market cap, because you would have to add back in all the individual market caps and values of all of Ford’s dealerships and private spin-off companies like Ford Motor Credit Company LLC, d/b/a Ford Credit.

Structurally, the companies simply are completely different.

James
Guest
James

Bitcoin performed better

CarGuy
Guest
CarGuy

In 7 more years Tesla will be making millions of cars and trucks a year and the rest of the automakers will be closing plants and feeling lots of pain.

CarGuy
Guest
CarGuy
CarGuy
Guest
CarGuy
Robert Weekley
Guest

Tony Seba! An Excellent Presentation!

Big Question: Who is Ready for Disruption?

Small Answer: Nobody!

Result? ‘Freaking Out!’

Robert Weekley
Guest

And Tesla will be working with the Bankruptcy Courts, and it will be to buy up the otherguys dying Factories!
;÷)

Will
Guest
Will

Lol

Reason speaking
Guest
Reason speaking

+1

Mike A
Guest
Mike A

Wow
Speaking of brainwashed.
Did you get those “facts” from AM radio while refueling diesel into your monster truck?

Robert Weekley
Guest

Nope! It sure sounds more like he got a lot of Revel Model Kits as a kid, used up the Glue, but never assembled the Models!
/Sarc

Steven
Guest
Steven

Hey, that Testers Red was a great glue, I must have built dozens of models with it. I hated it when they changed the formulation, it didn’t work as well.

Robert Weekley
Guest

You should come up to Fort Mac, in Alberta! Learn just how ‘Clean’ the Tar sands are! Then Visit an Oil Refinery, and tell us how great the air is above and around that! Or just fly through the Plume of a Pulp Mill, to see how nice Paper is!
Happy Breathing!

Reason speaking
Guest
Reason speaking

I live next to an oil refinery. We have the highest cancer rates in Texas. I wonder why. Can’t wait for everyone to drive electric. I would never consider a car without a plug. I fill mine with 100% wind power at night for free.