EV WORLD.COM
Sep 25, 2013 NEWSwire
a d v e r t i s e r
SYNDICATED NEWS
PHOTO CAPTION: Tesla Model S now the most popular car sold in Norway.

Tesla's Success Forcing Other Carmakers to Up Their Electric Car Game

Daniel Gross sees GM's concerns about Tesla as a harbinger of what is happening across the entire auto industry as carmakers try to come up with similarly successful electric car strategies.

Published: 25-Sep-2013

Cars can’t fly. But Tesla Motors, the electric sports car manufacturer, continues to defy gravity. Its stock has risen six-fold in the past year, giving it a market capitalization of $22 billion. That’s stunning, especially given that Tesla sells only about 2,000 cars per month and last quarter reported a $70 million profit.

By contrast, GM, which sold more than 275,000 cars in August and earned $1.2 billion in the most recent quarter, has a market capitalization $51.8 billion—about 2.5 times that of Tesla. And Ford, which sold 221,270 cars in August, more than 100 times Tesla’s total, and notched a $2.6 billion profit in the most recent quarter and is valued at $68 billion, about three times what Tesla is worth. Put another way, these companies have more in profits each quarter than Tesla has in revenues.

The astronomical valuation of Tesla could be a sign that investors are shrewdly predicting the future. The stock market, after all, is famously a futures market. Or it could be a sign of the sort of exuberance that frequently infects American investors. Hopped up on momentum and dreams, investors often bid up shares of companies beyond all reasonable valuation.

READ COMPLETE ARTICLE >>

IMPORTANT NOTICE: To read this The Daily Beast news story, click the READ COMPLETE ARTICLE link above. This will launch a separate window to the original news source. To comment on this story use the Reader's Comment form below.

<< PREVIOUSNEXT >>
RELATED NEWS ITEMS

Tesla Model S comes three versions with varying sized battery packs, offering differing range options.

Peter Eavis sees reasons for concern as sales lag, forcing slowed production rate of Model S all-electric car.

Tesla Mode X would be company's next production model.

Energy Department wants to see accelerated repayment schedule proposal on original 10 year loan by Oct 31, 2012.

Long-range Plan for national Tesla supercharger station network in North America, some of which will use solar power.

A 30-minute charge session, according to Tesla, will give a Model S with an 80 kilowatt-hour battery pack about 150 miles' worth of charge.

READER COMMENTS

blog comments powered by Disqus