Tesla Is Now Worth More Than Ford And GM Combined

Tesla is Now Worth More than Ford and GM Combined

 

Chart: Tesla is Worth More than Ford and GM Combined

 

Tesla has been on a roller coaster ride of market sentiment in recent years, but the electric car company is starting off the new decade on a high note.

The company is not only America’s most valuable automaker, it’s now worth more than Ford and GM combined.

tesla ford gm market caps

Tesla’s valuation has already surpassed the $100 billion mark – a significant milestone for a company that produces a fraction of the vehicles of its direct competitors.

Here’s a comparison of the top selling models in the U.S. for Ford, GM, and Tesla.

Rank Model Unit Sales (Q4 2019)
1 Ford F-Series 233,952
2 Chevrolet Silverado 163,311
3 Chevrolet Equinox 92,092
4 GMC Sierra 68,722
5 Ford Explorer 51,284
6 Ford Escape 47,587
7 Tesla Model 3 47,275
8 Ford Edge 37,621
9 Ford Transit 36,885
10 Chevrolet Malibu 34,314

A quick glance at this list is revealing. Though Tesla’s Model 3 put up strong sales numbers, it’s still only a small percentage of vehicles sold by U.S. automakers.

So, what’s driving Tesla’s meteoric growth, and is it sustainable? Below, we’ll take a high-level look at the bull and bear cases for the company.

 

The Bull Case for Tesla Motors

 

Tesla posted losses of $1.1 billion in the first half of 2019, but since then, the company has turned the situation around in dramatic fashion.

The automaker had a surprising third quarter with not only record deliveries of 97,000 cars, but also a profit of $143 million. Deliveries broke yet another record in Q4 2019, totaling 112,000 vehicles. These announcements helped improve market sentiment, sending the company’s stock back on an upward trajectory heading into 2020.

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