Elon Musk is not known as the “real-life Tony Stark” for nothing, and more proof of this has just come to light. Tesla Motors, the company founded by him and one of the major investors in electric and autonomous cars today, has just become the most valuable vehicle manufacturer in the United States.
And this is no small feat for a market with traditional names and global presence like Ford and General Motors. Tesla’s shares have surpassed $300, raising Musk’s company’s valuation to an incredible $53 billion, compared to “only” $50 billion for GM, for example.
While rivals saw a drop in their stock values due to some setbacks in sales in March 2017, Tesla experienced a 7% increase after hitting sales records in the first quarter of the year. The company’s performance was 69% higher than in the first three months of 2016.
Despite the excellent performance and having temporarily left behind two of the most well-known automakers in the world, Tesla still has a long way to go to occupy the top global spot. Currently, the title of the most valuable automaker in the world belongs to Japanese Toyota, valued at $177 billion.
The Model 3 will be Tesla’s first mass-produced vehicle.
The most curious aspect of Tesla’s success in the capital market is the fact that the company has yet to turn a profit. Its performance in the financial market has much more to do with the company’s plans for the future than with its sales performance, for example.
One of the ingredients that may spice up the optimism of the stock markets regarding Tesla is the raising of $1.17 billion to finance the production of the Model 3. In addition to market interest, consumers are also keeping an eye on the company’s first model to be manufactured and sold in mass, so much so that some analysts believe it needs more money to handle so many reservations.
Musk promised investors that his company would become profitable in 2017, so all cards are on the table for Tesla to finally start delivering the expected returns. The Model 3 is expected to arrive in July, but despite time running out, confidence in the now most valuable vehicle manufacturer in the U.S. remains strong.
Source: canaltech.com.br