Tesla, Inc is famous for its electric vehicles. Moreover, the company’s CEO is Elon Musk. He is one of the most recognizable chief executives not only in Silicon Valley but in the United States as well.
Moreover, the company founded by Musk reached a historic result. Tesla Inc’s stock market capitalization surpassed the combined values of Ford Motors Co and General Motors Co.
As the market capitalization jumped to $88 billion, the electric car maker’s stock rose about 4% and reached a record high on Wednesday. Thus, its market cap became $2 billion larger than Ford stock and General Motors market values. Ford’s market value is $37 billion, while Gm’s market value is $49 billion as of January 8.
Several factors wherein help to drive the market cap. One of the Factors is the third-quarter profit that topped the market expectations.
Furthermore, the company could speed up the process of car deliveries in the fourth quarter. Also, this year Tesla begins to deliver Tesla 3 electric cars built in Shanghai.
In the past three months, Tesla’s stock nearly doubled.
There was a forecast that Ford and GM would overtake Tesla. Nevertheless, Tesla was able to defy short sellers as well as other traders who were not confident in this company, thanks to the factors mentioned above.
Even though Tesla’s United States rivals delivered more cars than Silicon Valley-based companies, Tesla outperformed them. For example, Ford, as well as GM, produced more than 2 million automobiles, each only in the United States. Meanwhile, Tesla delivered 367,500 vehicles around the world in 2019.
The shares of General Motors remained at the same level in the past 12 months. The shares of Ford gained 10%. Meanwhile. Thus, the stocks of both companies are underperforming. Moreover, problems caused by falling care sales in China harmed investor sentiment.