Tesla turns out to be the Most Valuable Automaker

By Ali Raza on
April 11, 2017
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Tesla’s industry capitalization is currently more than General Motors, making it the biggest US-based motor company by that metric.

Stakeholders are clearly gambling on Tesla’s perspective, and are undeterred by reasons such as in 2016 Tesla lost $773, and the fact that it sells only a small number of cars as compared to the established rivals.

For example, General Motors sold out 10 million cars in the year 2016, earning $9 billion as a profit last year as compared with Tesla’s approximately 76,000 sales.

In the history of Tesla, it has only two profitable quarters as a public firm, on the other hand, last year General Motor earned a profit over $9 million.

On Monday, the shares of Tesla rose more than 3 percent reaching $313.73, an all time high. The closing price of the stock is $312.39.

Alexander Potter, an analyst from PiperJaffray, wrote, “In many ways, TSLA seems to play by its own rules.” For example, the firm burned via cash at a rate “better-established companies would likely be crucified for,” plans “unreasonably fast” assembly timelines and “spurns industry norms,” by doing things like selecting to sell directly to customers, instead of dealers.

In response to the criticism, Elon Musk wrote on his Twitter timeline:

Elon Musk pushed Wall Street’s patience when he purchased SolarCity, raising worries that he was overstretching in an attempt to turn Tesla into a viable energy company.

The financiers additionally stressed that the new administration of Trump would support traditional energy firms and get back from steps to fight climate change, dropping incentives for electronic cars.

But, the feelings of dread have washed-out as Tesla has shown indications of getting its frequent production problems controlled, and Elon Musk has himself turned out to be a high-profile addition to the Trump’s business advisory council.

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