Elon Musk’s electric car dominates
Image via Flickr/thetaxhaven
On Monday, Tesla’s stock soared roughly 6 percent, which may not sound like much, but it was enough to surpass Ford as the second most valuable car company in the United States. According to CNN Money, record sales of Tesla’s Model S and X cars launched the electric vehicle manufacturer to new heights, while Ford’s shares simultaneously dipped by 3 percent, following lackluster March sales. Overall, Tesla’s market value has topped a whopping $48 billion, while Ford now falls behind with $45 billion.
If this momentum continues, Tesla could rival General Motors, which currently holds the top spot among U.S. carmakers. GM saw its stock fall by 4 percent recently. And with an overall value of $50.8 million, it’s possible that Tesla could surpass GM as one of the highest valued American manufacturers.
Still, when it comes to pushing product, Tesla has a lot of catching up to do. Despite being close in total market value, both GM and Ford sell hundreds of thousands more cars than Tesla. While Tesla has reported selling approximately 25,000 Model S and X cars this first quarter, GM sold nearly 700,000 cars and trucks in about the same timeframe. What’s even more counterintuitive is the fact that GM and Ford continue to turn a profit, even while sinking in stock value. Meanwhile, Tesla continues to struggle to turn a profit. (It’s worth noting that Tesla recently dropped “Motor” from its name, in an effort to brand itself as an energy company instead of a car maker.)
What the recent change-up in the stock market proves is this: To compete both with one another and on a global level, American carmakers will have to put innovation and sustainability first. If Toyota’s $160 million market value is any indication, cars of the future will have to be both affordable and ecologically sound. With Tesla’s more affordable Model 3 vehicles going into production later this year and entering the market in 2018, we can only expect this type of enthusiasm to grow.