Tesla Motors Inc (TSLA) Market Cap Crosses $20 Billion

Tesla Motors Inc (TSLA) Market Cap Crosses $20 Billion
Blomst / Pixabay

Shares of Tesla Motors Inc (NASDAQ:TSLA) soared on Monday, climbing almost 6 percent and taking the EV automaker’s market capitalization over $20 billion. Over the weekend Tesla CEO Elon Musk said he would release a video of a system he and his team created which can design rocket parts using gestures and then print them out in titanium.

Play Quizzes 4

Tesla Motors Inc (TSLA) Market Cap Crosses $20 Billion

Tesla’s market cap compared to other automakers

Many investors and analysts have been harping on the fact that there is no rational numerical way to provide a reasonable valuation for Tesla Motors Inc (NASDAQ:TSLA). The company expects to build 21,000 vehicles this year, keeping it much smaller than competing automakers. Even so the company’s market cap is now double that of competitor Fiat, according to Tyler Durden of Zero Hedge.

Alight Capital Outperforms As Fund Positions For Uncertainty

Invest ESG Leon CoopermanAlight Capital Management declined 1.3% on a net basis for the first quarter of 2022, according to a copy of the firm's quarterly update, which ValueWalk has been able to review. Short positions offset most of the losses on the long side of the portfolio. The long/short equity fund exited the quarter with a net Read More

Several experts have noted that Tesla Motors Inc (NASDAQ:TSLA)’s valuation is based on expectations of what the company will do in the future. When the automaker’s market cap hit $20 billion, Durden notes that it will have to sell between 500,000 and 3 million cars by 2022 “to grow into its valuation.”

Competing U.S. automaker Ford Motor Company (NYSE:F) has a market cap of $64.9 billion, while General Motors Company (NYSE:GM) has a market cap of $48.8 billion. Both automakers sell far more vehicles every year than Tesla Motors Inc (NASDAQ:TSLA) expects to sell this year.

GM, others worried about Tesla

But the fact remains that there are signs that Tesla Motors Inc (NASDAQ:TSLA) may pose a threat to long-established automakers. Last month it was revealed that General Motors Company (NYSE:GM) had formed a group tasked with examining Tesla because it was worried that Tesla would become a major disruptor in the industry.

Also there are 10 different automakers whose vehicles Tesla Motors Inc (NASDAQ:TSLA) outsold in California in June. They are: Buick, Cadillac, Chrysler, Fiat, Jaguar, Land Rover, Lincoln, Mitsubishi, Porsche and Volvo.

Updated on

Michelle Jones is editor-in-chief for ValueWalk.com and has been with the site since 2012. Previously, she was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Email her at Mjones@valuewalk.com.
Previous article First Solar Sells Solar Projects To GE-Alterra Partnership
Next article Hottest Links: Charlene Chu, Wikipedia Predictions, Tesla Bubble?

No posts to display