Tesla's stock surpasses $500, total value now exceeds Ford and GM's combined

Polycount

TS Evangelist
Staff member

Yesterday, Tesla's stock surpassed $500 per share, which has pushed the EV maker's total valuation to roughly $94.6 billion as of writing. That's an astounding figure for such a comparatively small car company and one that Tesla is probably pretty pleased with. Notably, it also makes Tesla America's most valuable car company (for now).

The $94.6 billion number is made even more impressive when it's put into the appropriate context. As other outlets have noted, Tesla's total valuation is higher than not just that of other carmakers, but also the combined value of some such companies -- Ford and GM, for example. The two automotive giants are, as of now, worth $36.64 billion and $50 billion, respectively.

Of course, as great as this news will be for Tesla's executives and stockholders, there's no guarantee this rapid stock price growth will be sustainable in the long term. Tesla has seen quite a bit of success and stability over the past few months in particular, but the company's past is still troubled, especially where production is concerned. We'll have to wait and see whether those troubles will rear their heads again in the future.

For now, though, Tesla (and anyone who's purchased its stock) gets to enjoy the fruit of its labor. For our part, we look forward to seeing how Tesla's stock performs over the next few months. Will it rise further and take the company beyond the $100 million ceiling or will it fall back down to earth? Only time will tell.

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Plutoisaplanet

TS Maniac
By the end of the week Tesla will announce a Q4 and EOY earnings call date, likely to be set to Jan 29. A lot of people are expecting positive operating profit as well as positive cash flow in Q4. The operating profit for the year is expected to be slightly negative. On the call, Tesla is expected to forecast a seasonable weak Q1 and, based on previous calls, hype up the coming year with the China Gigafactory running, Model Y coming soon, solar roof production ramp up, and talk about turning on full self driving features this year. Tesla will also release a forecast of 2020 vehicle deliveries, probably of 500k - 600k.
 

captaincranky

TechSpot Addict
Musk and Tesla hype contributes to a lot of these stock surges. Well, that, and the opening of the new Chinese factories, (Which no doubt, are still operating at huge losses, but supported by the ChiCom government.

The stock price comparison is pure folly. A couple of things you might to take into account, are "exactly how many shares of Ford and GM are on the street"? How many times have they split?

Because as we all know, stock at $50.00 a share, is lot easier for a small investor to access, than stock @$500.00 a share.

The Tesla stock phenomenon whereby the more money Tesla loses, the higher its stock price goes,, is irrational to me. But, I agree its the best thing to happen to speculators in quite a while.
 

yeeeeman

TS Maniac
Don't give a damn about stock. They make amazing electric cars. If I would afford I would go now and buy a model 3 performance. Not an Audi or BMW. Profits again, not important. They stated very clearly that they are not in this business to get rich. their purpose is to accelerate the transition to electric. And arguably they are doing it when no other manufacturer had the guts to do it because they all kept their big dollars in their pockets. Musk took all the risks and made it happen and for that it deserves the support and the success tesla cars enjoy. I don't care about stock because Tesla in itself is not a stock driven company.
 

wiyosaya

TS Evangelist
I bet there are a number of analysts out there that think that the Tesla stock price is way over valued. But WTF? If anyone can find a way to get rich quick off it and get out before it crashes, more power to them.
 

wiyosaya

TS Evangelist
<...>And arguably they are doing it when no other manufacturer had the guts to do it because they all kept their big dollars in their pockets.<...>
Not true. Perhaps every automobile manufacturer out there is making a transition to electric even if they are complaining that its expensive. https://blog.ucsusa.org/dave-reichmuth/why-are-so-many-car-companies-making-big-ev-announcements (edit: note that this is a nearly 3-year old article.)

The advantage, if you really want to consider this as an advantage, is that Musky started from scratch. They did not have plants dedicated to ICE vehicles - which, like it or not, are expensive to convert to manufacture a completely different type of vehicle. In the business world, dropping, overnight, what would likely be a sizeable majority of that infrastructure simply would not have been a winning business proposition - especially when battery storage capacities are still nowhere near the range of ICEs.

Don't get me wrong, I am all for electrification, but the reality of the current state of the technology has to be considered. Musky is basically using AA batteries, and his "research" arm, or should I say prosthetic leg, has yet to substantially increase Li battery storage capacity. My bet is that someone else will beat him to that feat - especially since he has his research eggs all in one basket.

As I see it, the other manufacturers are taking a cautious approach and proving out their technology through testing rather than hiring their owners, like Musky did, to crash test their vehicles on public highways.

In the long run, I think Musky will be in for a rude awakening when the other manufacturers release their vehicles. I am sure Musky worshipers will disagree with me, however, time will tell.
 
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Vulcanproject

TS Evangelist
I bought at 230 and I'm in long. Not a particularly big investment, I considered it more a calculated gamble for my own amusement. Call it a sports bet on a team you don't necessarily support hardcore but wouldn't mind seeing succeed.

It'll likely have as many dips as crypto for the next few years, it'll be fun sitting and watching.
 

captaincranky

TechSpot Addict
I bought at 230 and I'm in long. Not a particularly big investment, I considered it more a calculated gamble for my own amusement. Call it a sports bet on a team you don't necessarily support hardcore but wouldn't mind seeing succeed.

It'll likely have as many dips as crypto for the next few years, it'll be fun sitting and watching.
In reality, "Tesla's stock price is more than GM & Ford's combined", is bogus to begin with. If either of those other company's stock got that high, they would probably split it.

However, Musk will likely be able to cover any losses more easily in China than in the US..
 
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Vulcanproject

TS Evangelist
In reality, "Tesla's stock price is more than GM & Ford's combined", is bogus to begin with. If either of those other company's stock got that high, they would probably split it.

However, Musk will likely be able to cover any losses more easily in China than in the US..
It's definitely pumped up at this moment in time and overvalued when you look at quarterly financials. I fully expect a few dips and proper correction as we go further into this year, however even after that >$300 seems straightforward.

The company ended on a high in China. It seems stocks like Tesla are so volatile thanks a great deal to having Musk as CEO. His profile is so high that it is bound to bounce around crazily.

I didn't put in anything I couldn't afford to lose, it just adds more entertainment to the news coverage of Tesla for me :joy:
 
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yeeeeman

TS Maniac
Not true. Perhaps every automobile manufacturer out there is making a transition to electric even if they are complaining that its expensive. https://blog.ucsusa.org/dave-reichmuth/why-are-so-many-car-companies-making-big-ev-announcements (edit: note that this is a nearly 3-year old article.)

The advantage, if you really want to consider this as an advantage, is that Musky started from scratch. They did not have plants dedicated to ICE vehicles - which, like it or not, are expensive to convert to manufacture a completely different type of vehicle. In the business world, dropping, overnight, what would likely be a sizeable majority of that infrastructure simply would not have been a winning business proposition - especially when battery storage capacities are still nowhere near the range of ICEs.

Don't get me wrong, I am all for electrification, but the reality of the current state of the technology has to be considered. Musky is basically using AA batteries, and his "research" arm, or should I say prosthetic leg, has yet to substantially increase Li battery storage capacity. My bet is that someone else will beat him to that feat - especially since he has his research eggs all in one basket.

As I see it, the other manufacturers are taking a cautious approach and proving out their technology through testing rather than hiring their owners, like Musky did, to crash test their vehicles on public highways.

In the long run, I think Musky will be in for a rude awakening when the other manufacturers release their vehicles. I am sure Musky worshipers will disagree with me, however, time will tell.
I think you are a bit too soft on the other companies. The other companies had all the reasons in this world to continue the same sh*t combustion cars till year 3000 if it weren't for emission standards (which are a good thing BTW) and for Tesla. They didn't give a damn about electrification, because it was and still is expensive and the margins are nowhere near what they are with piston cars. So I stand to my opinion and say that Mr musky as you call him did a balsy move and showed that yes, you can make money with electric cars. Yes, there is a market for them. Yes, they can have good enough range. And many other wrong beliefs that he debunked during these years.
You say some other manufacturer will come and smash Tesla but I can tell you that the power train in the model 3 is extremely efficient compared to the competition. Their battery pack, while not using some alien technology, has the best capacity to weight ratio and charging speeds on the market. They are at the front with many electric components and they will stay there if they keep the focus. Worry not, if a company invents a new battery chemistry that is revolutionary, all manufacturers will use it. The difference lies in the packaging, software, inverters, motors and the whole package. And the model 3 is arguably the best as a whole.
 

captaincranky

TechSpot Addict
Seen like that by the money loving guys. And no wonder he's billionaire, money comes with success.
Tesla has lost money hand over fist ever since the company was formed. Government subsidies and stockholders who can't read or count, continue to pour money into it. Tesla's quarterly losses have reached as high as a quarter billion dollars, yet Musk is still as "multi-billionaire". How much have those stockholder's money and government subsidies do you think have gone into Musk's pocket? Oh wait, none right? He's in business "for the love of the environment", at least as long as you have an average of $75.000 bucks a pop for one of his cars.

Musk made his money in "Paypal", and he is the very best at taking other people's money, skimming some for himself, and then handing it off.

Musk wouldn't be anywhere without his "silver tongue", you know the one that talks Panasonic out of billions of dollars to build him a battery ""gigafactory".

So, spare me the soliloquy regarding, Musk's altruistic motivations. He's in it to line his pockets, from anyone who is foolhardy enough to listen.