Tesla Market Value Surpasses Ford

They may be right, they may be wrong, but what we saw overnight Monday was a rare event. The company has a 1 Year high price target of $250.94.

In case you’re not up to date on all the hip Wall Street lingo, market capitalization is the total market value of a company’s outstanding shares, which includes shares held by its shareholders, including share blocks and restricted shares.

At it current pace, Tesla – only fourteen years old – is poised to surpass 120-year old General Motors (GM), which has a market cap $51 billion as of Monday’s close.

Several analysts have released their opinion on Tesla, Inc. The stock was last seen 7.27% higher, reaching at $298.52 on April. 3, 2017. And all this is on top of its space travel ambitions as well.

Tesla is now valued at $47.8 billion which is a great achievement for any company which is relatively new in the market. Other auto manufacturers like Ford Motor Co. ship millions of vehicles each year and possess a healthier balance sheet with yearly profits and revenues that far eclipse that of Tesla Inc.

“While Tesla may enjoy the favor of investors, it still faces some daunting hurdles to reach its goals”, wrote Bill Vlasic and Neal Boudette, of The New York Times Monday. Cramer explained that with most money managers focused on growth, Ford has ceased to be an attractive pick at any price.

The electric-car manufacturer’s shares jumped 7.3% to close at a record US$298.52 in the United States, putting its market capitalisation at US$48.7bn, compared to Ford’s US$44.6bn. General Motors leads all US vehicle companies at $50.8 billion, but its stocks tumbled 4 percent.

The company generated revenues of $151.8 billion, sold over 2.61 million vehicles and recorded $4.6 billion profit in 2016. Google has also done it and Facebook has certainly crunched open and created an entire new industry. Hedge funds and other institutional investors own 57.29% of the company’s stock. The electric vehicle producer reported ($0.69) EPS for the quarter, missing analysts’ consensus estimates of ($0.43) by $0.26. At recent session, the prices were hovering between $284.58 and $299.

Investors are betting Musk can deliver on ambitious growth targets pegged to the mass-market Model 3 to roll out later this year, which is to retail for about US$35,000. As Model 3 ramps and jumps the sales numbers, those hopes can start to factor into earnings hopes for next year.

Problems with the production of the Model X, the second vehicle developed and made by Tesla, hit the company’s share price when the SUV launched in September 2015, behind schedule.

Ford was established nearly 114 years ago and has been making mass market vehicles for a large part of its history.

Ford reported sales fell a worse-than-expected 7.2 percent, while Toyota sales dropped 2.1 percent, compared to the same period a year ago. Last year, short-sellers lost $354 million, but this year is shaping up to be much worse for them.

In related news, CEO Elon Musk acquired 95,420 shares of the company’s stock in a transaction that occurred on Friday, March 17th.

The domestic total vehicle sales for March are being pegged at 16.53B from Wards. SUVs/trucks and passenger vehicle sales all fell.

Tesla’s “modestly stronger trend to Model S & X deliveries does not necessarily read across directly to a smoother launch for the Model 3, which we believe drives valuation for that stock”, it said.