Teslas share price reaches a new high of nearly $500, and its market value exceeds the sum of GM Fords

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 Teslas share price reaches a new high of nearly $500, and its market value exceeds the sum of GM Fords


Netease technology news on January 9, according to foreign media reports, on Wednesday local time in the United States, the market value of Tesla, the electric vehicle manufacturer, reached a new high, surpassing for the first time the sum of General Motors and Ford Motor Company.

Figure 1: on January 7, 2020, Elon Musk, CEO of Tesla company, delivered a speech at the opening ceremony of the model y project of Tesla Shanghai plant

On Wednesday, Teslas shares ended up $23.08, or 4.92%, at $492.14, with a market value of $88.7 billion, approaching $500 in the session. US media compared the market value of Tesla at midday, when the market value of Tesla was $88.2 billion, which was $2 billion higher than the total market value of GM and Ford. The current market values of the two companies are $49.4 billion and $36.6 billion respectively.

Figure 2: Teslas market value exceeds the combined value of GM and Ford

Teslas share price has nearly doubled in the past three months, driven by positive factors such as unexpected third quarter earnings in October last year, faster progress at Chinas new plant in Shanghai and better than expected vehicle deliveries in the fourth quarter.

The success of Elon Musk, Teslas chief executive, broke short sellers and other traders expectations that Tesla would be overtaken by established car companies, including general motors and Ford.

Figure 3: Teslas market value is much higher than GMs and Fords

Underscoring investors confidence in the future growth of musk and its company, Teslas market value has surpassed that of its US competitors, even though its car sales dwarfed Teslas. GM and Ford each delivered more than two million vehicles in the United States last year, while Tesla delivered only 367500 globally.

While Teslas recent progress has cheered supporters, many analysts and investors remain skeptical of the companys ability to continue to provide profits and cash flow.

Figure 4: U.S. automakers 2019 sales estimates

In recent years, Tesla has repeatedly failed to achieve its expected goals, and the capricious behavior of musk individuals has also been closely watched by financial regulators and Tesla shareholders.

Its unusual for Wall Street that more analysts rate Tesla as sell rather than buy.. According to data compiled by refinitiv, 11 analysts proposed to buy Tesla shares, 13 analysts proposed to sell, and 9 analysts took a neutral position.

GMs share price hasnt changed much in the past 12 months, while Fords share price has risen by 10%, both of which are significantly worse than the market, and the poor sales of Chinese cars have hit the investor sentiment of the two companies.

This week, Tesla began to deliver the domestic model 3 electric vehicle produced at its Shanghai plant, less than a year before the $2 billion plant opened. (small)

Source: Wang Fengzhi, editor in charge of Netease Technology Report