Tesla overtakes Ford in market value

Tesla, the new American car company, has surpassed Ford — a pioneering American car company that’s 100 years older — in market value.

Shares of Tesla are up sharply after the electric-vehicle maker on Sunday reported a record number of deliveries for the first quarter: 25,000 vehicles, up 69 percent for the year-ago quarter.

Tesla shares already got a boost last week after Chinese internet company Tencent revealed it had bought a 5 percent stake in the company. Tencent gushed that “Tesla is a global pioneer at the forefront of new technologies including electric vehicles, assisted driving, shared vehicles, digitizing real-world information, sustainable energy generation and scalable energy storage.”

Tesla stock is up about 5 percent Monday morning to $292.10, bringing its market capitalization to $47.65 billion. Ford’s market cap is at $44.85 billion.

The Palo Alto company said first-quarter production, of 25,418 vehicles, also set a record.

Tesla’s encouraging first-quarter numbers come as it prepares to start production of the Model 3, its cheapest car yet, this summer. The sedan, whose price will start at $35,000, has almost 400,000 pre-orders from people who plunked down $1,000 for reservations last year.

Tesla may have surpassed Ford in market value, but Ford dwarfs Tesla in other measures.

Tesla, the Silicon Valley electric-car maker co-founded by entrepreneur extraordinaire Elon Musk, had $7 billion in revenue in 2016, and reported a surprise profit of $21.9 million in the third quarter. It has never made a yearly profit. Ford, the Detroit automaker started by the legendary Henry Ford, brought in $151.8 billion in revenue last year, and posted a profit of $4.6 billion.

Both companies, born a century apart, are working on electric vehicles and autonomous-vehicle technology. A new report by Navigant Research says Ford is ahead of Tesla and others in the self-driving car race.

 

Photo: Tesla CEO Elon Musk speaks at the unveiling of the Model 3 at the Tesla Motors design studio in Hawthorne, Calif., in March 2016. (Justin Pritchard/AP)

 

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  • alrui

    Talk about fake news!

 
 
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