Tesla Motors – the largest electric car making company in the world – is quickly inching ahead of General Motors to become the most valuable car company in the United States. On Monday, the automaker hit a market value of $50.84 billion, moving past General Motors at $50.79 billion.
Tesla kind of gets a free pass: Executive Analyst
For the automaker, which inched ahead of Ford (that is valued at about $45 billion), it is another huge milestone. The electric car making company passed Ford in value last week, becoming the second most valuable car maker in the U.S. Now, the U.S.-based electric car making giant is inching closer to the Japan-based Honda that has a market value of around $54 billion. After passing Honda, the automaker will have another milestone to cross Toyota, which is the most value carmaker in the world and is three times as big.
The automaker loses money because it sells only a small fraction of the cars of its much older competitors. The U.S.-based car making company sold around 25,000 of its Model X and Model S vehicles in the first three months of the year whereas General Motors sold around 690,000 cars and trucks and Ford Motors sold around 617,000 vehicles.
In an interview to CNNMoney, Rebecca Lindland, executive analyst at Kelley Blue Book, said the automaker is being treated differently than other carmakers. She told the news site, “They’re classified as a tech company so they’re not really held to the same standards.”
Further, the executive analyst said that the Wall Street focuses on more conventional criteria like profitability for established car making companies like General Motors and Ford but the U.S.-based electric car maker “kind of gets a free pass.”
Investors quite optimistic about the upcoming Model 3
Rebecca Lindland does not believe that the attention that the electric car maker has been getting from the stock market is necessarily unwarranted, particularly if self-driving and electric cars take off as anticipated. She says, “When we think about the future of mobility, they’re very well-positioned.”
In addition to this, the investors also look more optimistic about the upcoming Model 3 vehicles of the EV making giant because the Model 3 Car, which starts at $35000, is costing less than the Model X and Model S. The affordable car could assist the electric car making company making the brand more accessible to middle-class or mid-stream buyers.