According to reports, Tesla Inc(NASDAQ:TSLA) has outdone General Motors and Ford to become the most valuable American car-maker.
Regardless of being just a fraction of the size of its rivals, Market cap -wise Tesla Motors is now the major automotive company following rise in shares over the past few months.
Tesla Inc(NASDAQ:TSLA) stock shot up by more than three per cent to $312.39 per share in contrast with GM’s valued at $33.97 and Ford’s which are worth just $11.25 per share.
That takes the Tesla’s market capitalization to $51.53 billion, more than $1 billion above GM.
Although, General Motors’ managed to deliver more than ten times as many cars as Tesla last year, who sold just 76,000 in contrast to GM’s 10 million. Ford sold 2.6 million in 2016.
Wall Street seems to believe that Tesla is set to become a main player in the car-making market as electric cars and self-directed driving vehicles popularity is on the rise.
According to Morgan Stanley analyst Adam Jonas, Tesla because of its sophisticated technology is capable of touching other markets, such as car-sharing worth $10 trillion as well as a $1 trillion logistics market, and a $2-$3 trillion energy storage market.
Meanwhile Tesla is in line to start making in July of the Model 3, which is intended at the middle market, making the car available to a broader swath of consumers.
According to the carmaker it by now has orders for more than 400,000 of the Model 3, which will be sold around $35,000, and has said it will accomplish production of 500,000 by 2018, a speed many analysts are not sure it will attain.