Tesla Is Now Worth The Same As Ford And GM Put Together

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Tesla's market cap soared in 2019, making it the most valuable US-based auto manufacturer.

Forget the concerns from the naysayers, and forget that profitable quarters have been woefully few and far between. Because Palo Alto-based Tesla, Inc. is now far and away the most valuable US-based auto manufacturer in terms of market value, its share prices soaring by more than a hundred dollars over the past year.

$TSLA stock very nearly crested $500 per share this week and now hovers around $480 as of this writing, following the company's surprise announcement that it had met production volume targets in the fourth quarter. That gives it a market capitalization - the total value of all outstanding shares - in excess of $85 billion USD, which is about equal to Ford's $36.7 billion and GM's $49.7 billion combined market caps.

2020 Tesla Roadster Front View Driving Tesla
2020 Tesla Roadster Front View Driving Tesla
2020 Tesla Roadster Front View Driving Tesla

And, CBS News points out, it's more than Ford's $78 billion peak value achieved back in 1998, which was previously an all-time high for US automakers.

Despite the rally, it could be argued that investors' faith in Tesla, Inc. is misplaced. After losing more than $1 billion over the first half of last year, the company posted a surprise $143 million profit in Q3 2019, marking just its fifth profitable quarter over more than ten years on the market. By contrast, GM is estimated to have raked in $7 billion in profit in 2019, after posting $10.8 billion in 2018 and $11.9 billion in 2017.

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Tesla
2021 Tesla Model Y Side View Tesla
2021 Tesla Model Y Front View Tesla

But in the past year, Tesla has demonstrated a potential for tremendous future growth, setting a new record with 367,500 vehicles delivered in 2019 - surpassing a targeted minimum of 360,000 deliveries - and starting production at a new facility in Shanghai that will eventually turn out 3,000 new Tesla vehicles every week. That, in combination with new models planned for launch over the coming years - the promise of Model Y crossover, semi truck, and Roadster sports car this year, as well as the Cybertruck pickup in 2021 - gives Tesla the sort of momentum that Ford and GM can't seem to match.

2021 Tesla Cybertruck Front Angle View Tesla
2021 Tesla Cybertruck Front View Driving Tesla
2021 Tesla Cybertruck Side View Tesla
2021 Tesla Cybertruck Side View Driving Tesla

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