After plummeting to a 52-week low last June, Tesla has risen 160%, reaching a market valuation of $86.5bn. This makes it the most valuable automaker in US history.
The record, previously set by Ford in 1999, was $76.1bn. Although, if we take into consideration inflation, the figure would be equivalent to $117bn in today’s money.
GM, another large automaker, as recently as October 2017 was valued at $67.7bn. However, both GM and Ford have significantly dropped in value over the past few years, with GM now valued at $50.7bn and Ford $36.9bn — making their combined value match that of Tesla’s.
David and Goliath
What’s remarkable about Tesla is its size in comparison to its competitors. In 2019, Tesla sold 367,500 cars; GM sold 5.9m vehicles; Ford had sales of 4.6m. In addition to this, Tesla is growing much faster than other automakers, in 2019 its sales grew 50%.
Part of the reason for its dramatic growth over the past year is that Tesla reported better than expected growth in sales and profits, then production in its Shanghai plant started earlier than expected.
Meanwhile, a 40-day strike cost GM $3bn, and its shares have risen only 5%. Ford’s shares have fallen 2%.
For every winner there must be a loser, and while Tesla’s stock was rocketing through the year, short seller’s accounts were plummeting — it is estimated that over the past seven months short positions on Tesla have lost $8.4bn.Tags: tesla