Shares of Tesla rose 1.74 percent at closing Tuesday to $303.70 per share, lifting its market capitalization to $49.4 billion, $4 billion more than Ford’s and around $1.9 billion below that of top U.S. automaker General Motors.
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This puts Elon Musk’s auto company within striking distance of General Motors, which boasted a market capitalisation of $51.2 billion at the close of trading.
Meanwhile, Ford reported USA sales of 236,250 units in March, a 7.2% year over year decline.
Investors still rewarded the company Monday, with stock movements reshuffling the hierarchy among United States carmakers.
While Tesla is starting to take over market share, it has few miles to travel before it reaches the same level of sales.
Over the past month, Tesla’s current year estimates have narrowed by around 1.5% to a loss of $2.69 per share. BlackRock Investment Management LLC boosted its stake in Tesla by 3.2% in the third quarter. “Between the Gigafactory, the solar panel company, and the autonomous technology embedded in every Model S and Model X being produced, Elon can claim to be ahead of traditional automakers on the road to self-driving cars powered by renewable energy”. Musk has been keen to note that, although Tesla has a shorter history than other brands, the stock price is based on future performance, so analysts are now trying to decide what that future looks like.
While G.M. and Ford may have strong profits and healthy balance sheets, Tesla offers something Wall Street loves much more: the potential for dramatic growth.
“I don’t know if people want electric cars, but people wants Tesla”, Ben Kalla, an industry analyst with Robert W. Baird & Co., told Bloomberg.
To Elon Musk, the Tesla Model 3 should enable the manufacturer to change dimension by becoming the bestseller future of the group.
That’s more than GM’s $49.6 billion valuation.
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Tesla is increasing its production steadily. Finally, Guggenheim restated a buy rating and set a $300.00 target price on shares of Tesla in a report on Monday, February 27th. The shares were acquired at an average cost of $262.00 per share, with a total value of $25,000,040.00. “Nobody thinks Ford or General Motors is going to do that”. He also pointed out that the company expects to product 5,000 Model 3 cars by the end of this year, but he feels that the company could just be guiding conservatively. In 7 years of stock market listing, Tesla has had only two quarters beneficiaries. In the first three months of the year, FCA’s sales were down eight percent.
