Electric car maker Tesla’s stock gushed to a record, passing over the century-old rival Ford Motor Co’s market value. At the close of trading, Tesla ended up with a market value of $48.2 billion, which is $3.1 billion more than Ford, America’s second-largest automaker after General Motors Co. As it’s worth a celebration, Tesla CEO Elon Musk took to Twitter to poke fun at short sellers.
Stormy weather in Shortville …
— Elon Musk (@elonmusk) April 3, 2017
After the company reported its delivery of 25,000 vehicles (around 50% of which were the Model X), its stock was up as much as 5.8 percent in the first quarter of this year. It gives the investors a hint that Tesla can back up its objectives for progress ahead of the launch of the Model 3. Also, Tencent’s investment in the electric car startup helped raise its price.
However, for some, such as AutoPacific analyst Dave Sullivan, Tesla’s outgrowing of Ford doesn’t count. For more than 100 years, Ford has been manufacturing cars and its value is the product of tangible results.
“It’s mind-boggling that a company that has the global breadth and depth that Ford has is suddenly valued at less than or equal to Tesla,” Sullivan said to Bloomberg.
Tesla’s potential for progress is based upon its stock price. According to Elon Musk, after Model 3 launches, his company could generate up to 500,000 vehicles a year in 2018. However, it’s not sure if that will actually happen. Tesla is the brand of which people are both excited and optimistic about. Both Tesla and Ford are similarly valued as a brand but the difference is, Tesla is a bit of buzz-worthy that makes it able to convince the customers to invest their money on it.