Tesla now 2nd largest automaker as competitors' sales falter

Screen Shot 2017 04 03

The company's revenue for the quarter was up 88.2% on a year-over-year basis.

Tesla doesn't sell almost as many cars as Ford, GM or Honda - or other auto giants like Fiat Chrysler, Toyota and Volkswagen. That puts its market cap at about $53 billion, well in excess of GM's $50 billion. Investors are seeing the fact that by the looks of it, Tesla will have a better growth potential in the future too.

Tesla is now the second-most valuable American vehicle company - and it's nipping at General Motors' heels. The stock has moved 10.47% over the last 5 sessions.Since the start of the calendar year, Tesla, Inc. The upswing in stock price was helped by Sunday's quarterly report from Tesla which indicated the company's increase in sales from just a year ago.

A black Tesla Model 3 release candidate version has been spotted near the company's Silicon Valley-based headquarters in Palo Alto, California.

The firm has announced plans to launch a Model 3 this year, a cheaper auto created to appeal to a wider audience than its premium models. The electric vehicle maker has been rapidly expanding its operations, with recent proliferation in the Middle East, and plans to make Model 3 available in many new markets, including India, Brazil, South Africa, New Zealand, Singapore and Ireland.

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Tesla sold about 40,700 vehicles previous year - roughly the same number of F-series trucks Ford delivers every three weeks. That's how Tesla, which produced just 84,000 cars past year, can be worth more than Ford, which sold almost 7 million cars in 2016, 83 times Tesla's production.

Shares of Tesla surged 6% Monday, driving the company's market cap past rival Ford for the very first time.

This news, first reported by Bloomberg, comes a day after Tesla reported a record number of vehicle deliveries in 2017's first quarter. With its new electric auto, the group aims to achieve for the first time a half million vehicles passed per year, So start finally playing in the same yard as the big traditional builders. "Nobody thinks Ford or G.M.is going to do that". At the same time, monthly sales figures for several Detroit automakers "showed them struggling to meet last month's performance", according to the Times. The company will need to deliver on promises such as reaching a target production of 500,000 vehicles in 2018 if real success is ever to be realized. Vehicle companies believe they'll be able to navigate this transition gracefully, but Wall Street doesn't seem to believe it.

The Model 3, which is expected to be available later this year, should cost about $35,000 - significantly less than the Model S sedan and Model X SUV. "Since you can't buy SpaceX stock, Tesla is the only way for people to invest in the Musk cult of personality". Stevens Capital Management LP acquired a new stake in shares of Tesla during the third quarter worth about $4,092,000.

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