Investors think the Model 3 could be a hit, and it's pushing up the EV maker's stock value.
In Wall Street’s opinion, Tesla is now a more valuable automaker than Ford, which is over a century old. The EV company overtook the industry veteran on March 27 when Tesla had a market capitalisation of $45.47 billion, versus $45.35 billion for the Blue Oval.
According to Motor1’s partners at InsideEVs, Tesla has been nearing Ford’s market cap for about a month. As of February 28, the Blue Oval’s stock price as dropped from $12.53 a share to $11.46 at the close of yesterday’s trading. Tesla has gone from $249.99 to $270.22 in the same period.
The market cap represents the total value of a firm’s outstanding stock. Tesla’s high figure shows that investors like what the company is doing, not that it’s a bigger company than Ford in a real-world sense. The Blue Oval builds dozens of models in factories across the world and employs thousands of people. Tesla offers just two products, with a third one on the way. The EV maker hasn't yet posted a full-year profit but was in the black during Q3 2016.
As an example, Ford delivered 820,799 units of the F-Series pickup in the United States last year and 2,502,973 vehicles in the country. In contrast, Tesla model 76,230 total vehicles worldwide in the same period.
InsideEVs speculates that the recent surge in Tesla’s stock price has a connection with Elon Musk’s good news about the Model 3’s development. The company boss recently unleashed a flurry of tweets about the upcoming, more affordable model, including a video of a pre-production example on the road.
The first consumer deliveries of the Model 3 in July and production would really ramp up in September for satisfying the thousands of pre-orders. The vehicle’s specs are still a mystery, though. The EV maker claims the four-door has a range of at least 215 miles and can accelerate to 60 miles per hour in less than six seconds. Prices for them should start around £35,000.
The Model 3 enters the affordable EV segment with immediate competition from the Chevrolet Bolt (albeit without a Vauxhall version here in the UK...). Plus, the next-generation of the Nissan Leaf debuts in September and should be on sale in some markets before the year is over.