Tesla becomes the most valuable US car maker beating Ford’s record in 1999
Tesla becomes the most valuable US carmaker of all time after the company closed Monday with a market value of $81.39billion surpassing Ford Motor’s peak of $80.81billion set in 1999. Their shares were trading over 5% before the market opened again on Wednesday and finished the day before at $469.07.
This direction displays the extent to which investors have bought into Tesla’s vision that electric vehicles will eventually rule the road. While Ford has beat Tesla to market with a plug-in Chevrolet Bolt with a price and range similar to the Model 3 sedan coming later this year, they failed to match the eagerness drummed up by its much smaller and rarely profitable US peer.
According to Alexander Potter, an analyst at Piper Jaffray Cos, “Tesla engenders optimism, freedom, defiance, and a host of other emotions that, in our view, other companies cannot replicate.” He also upgraded his stock on Monday after owning a Tesla for seven months. He then added, “As they scramble to catch up, we think Tesla’s competitors only make themselves appear more desperate.”
Considering Tesla pushes at a higher valuation than Ford, it will rank the 6th most top valued carmaker by market cap. This then will fall behind Toyota Motor Corp, Daimler AG, Volkswagen AG, BMW AG and Honda Motor Co. They will still have a long way to go to match Toyota’s $172 billion market cap.
“The market cares more about the potential new market value of the other businesses Tesla is in than about real profits and cash flow,” said David Whiston, an analyst at Morningstar Inc. “Right now, there is nothing to slow Tesla’s momentum. They could pass Honda, too.”