Tesla’s market capitalization is now higher than Ford’s.
Tesla is trading up on the day, sending its market cap to $47.46 billion. And then there’s Ford, the blue chip automaker that’s exactly 100 years older than Tesla, which is trading down on the day, causing its market cap to dip to $44.89 billion. General Motors’ market cap is only a stone’s throw away at $51 billion.
This fluctuation in valuation comes on the back of Tesla reporting good news and Ford reporting bad news. Tesla saw vehicle production and deliveries rise during the first quarter of the year at a pace that beat analysts’ expectations. Meanwhile, Ford is recalling some of its F-150 pickup trucks and its U.S. monthly sales fell 7 percent during last month.
Tesla’s stock has been steadily gaining value since the latter weeks of 2016. It’s now trading at an all-time high of $291.54, up from $181 in the early days of December 2016. But the stock price only shows part of the picture.
Tesla is in deep debt and only shipped some 76,000 vehicles last year. Other automakers, like Ford, ship millions of cars each year and have a more healthy balance sheet with annual revenues and profits that far eclipse that of the 13-year-old startup. Tesla’s strength comes from its sales pitch of delivering the best possible electric vehicles. Investors are clearly hopeful that Tesla will become a key part of the automotive future.