Tesla Is Already Worth More Than GM and Ford Combined

Shares of Elon Musk's car company are rapidly rising on news of a successful production launch in China and rumors about the company’s new developments.

Tesla’s stock was almost up 5% (one share was worth $492.14) on Wednesday, increasing the company’s market capitalization to nearly $89 billion. This is $2 billion more than the total cost of the American automobile industry leaders, General Motors (GM) and Ford, which is estimated at $87 billion.

Tesla Is Already Worth More Than GM and Ford Combined photo 2

Due to unexpected third-quarter profit, success at a new Chinese factory and better-than-expected car deliveries in the fourth quarter, Tesla's stock has more than doubled in the past three months. It has already been reported that the company had so many unloaded orders at the end of the year that Elon Musk and his mother worked at the Tesla Delivery Center on the New Year's Eve.

It’s clear that Tesla is back to being a story stock and there’s a lot of good news out there," says David Kudla, Chief Investment Strategist at Mainstay Capital Management. «But there are still some problematic issues out there, chief among them is what will its sustained profitability look like.

Underscoring investors’ confidence in Musk and the future growth of his company, Tesla’s market capitalization has outperformed its American rivals, even though their business outperforms Tesla’s. GM and Ford delivered more than 2 million vehicles to the US last year, compared with Tesla's worldwide deliveries of 367.500 vehicles.

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