Tesla's market capitalization exceeds GM's market capitalization

Netease Technology News April 11 news, according to the Financial Times reported that the market value of Tesla Electric Vehicle Company had exceeded General Motors on the 10th, becoming the highest value of car manufacturers in the United States. Wall Street analysts believe that Elon Musk's ambition will eventually push its small electric car makers to surpass the largest US car makers.

Although Tesla Motor’s production in 2016 was less than 1% of General Motors’ production, Tesla’s market value reached US$51 billion on the 10th, slightly higher than General Motors’ US$50.9 billion. However, in the past three years, Tesla lost a total of 1.9 billion U.S. dollars, while General Motors' net profit reached 23 billion U.S. dollars. But market value changes at least reflect the growing confidence of Wall Street analysts who believe that Musk will be the first person to bring electric cars into the mainstream.

Although General Motors also plans to launch the electric vehicle Chevrolet Bolt, investors believe that Tesla's upcoming mass-market electric vehicle, the Model 3, will be a huge success. The car will begin mass production this summer. Michelle Krebs, an analyst with Autotrader.com, said: "The market value does not mean much sense. Tesla investors believe more in the future. For Tesla, the real test is its With the introduction of the Model 3, this high-capacity, mainstream-priced electric vehicle may help Tesla to be profitable."

After sales fell into a weak state, people began to worry about the development of traditional industries. Last year, Tesla delivered 76,000 vehicles worldwide, while General Motors sold 10 million vehicles worldwide and Ford Motor Co. had 6.6 million vehicles. Recently, GM announced that it had a share of 10.8% of the global automotive market in 2016, and Tesla’s global market share was almost negligible, less than 0.1%.

However, according to market capitalization, a Silicon Valley start-up that has become the largest automobile company in the United States is an important milestone in the automotive industry. The entire automotive industry is trying to accelerate its reliance on internal combustion engines. For investors, Tesla is betting on the “new type of maneuver” and the car is transforming from traditional cars to electric cars and driverless cars. In addition, the focus of the US automotive industry is moving from Detroit to Silicon Valley.

The reason why Tesla's market value soared was mainly due to its report released last weekend. In the first quarter of this year, 25,000 vehicles were delivered, exceeding analysts' expectations. At the same time, the sales of the traditional automotive industry are disappointing, and many people worry that the old car manufacturers are being eliminated. According to data released by Wards Auto, light vehicle sales in the US were also lower than expected in March, down 1.5% from the same period a year earlier.

In the first quarter, U.S. auto sales were weaker. Many insiders are concerned that the US auto industry's annual sales will decline this year. This is the first time that the U.S. auto industry has fallen since bottoming out during the Great Recession. In the best case, it may only be the same as last year, with sales of about 17.55 million vehicles. In sharp contrast to this, Tesla’s stock price rebounded strongly by 72% from the beginning of December last year, and the company’s voice of doubt all disappeared.

When Musk decided to acquire SolarCity, a solar company, he declared that Tesla would be established as a sustainable energy group. Because Wall Street analysts are concerned about this, he asked them to be patient. In addition, investors are also concerned that the Trump administration will introduce policies that benefit traditional energy companies, avoid measures to combat climate change, and reduce incentives for electric vehicles. However, these concerns have evaporated with the excellent performance of Tesla and Musk became a consultant to the President’s Business Council. (small)

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