14-Year-Old Tesla Worth More Than 113-Year-Old Ford Motor Company?
According to Wall Street, the young and forward-thinking Tesla is more valuable than the motor company.
The stock market is an uncharted territory by most average folks, but the shots called by Wall Street can often rock the world we all live in. For example, this week was a quite positive one for the electric car manufacturer Tesla, and a not so good one for the ‘ole Ford Motor Company.
According to stock market reports, Tesla beat the expectations set by financial analysts by delivering more cars than expected, and increasing production levels to a healthy level. As a result, Tesla’s market cap is now $47.6 billion dollars. On the other hand, Ford’s sales have slumped in 2017 especially in March, where despite higher truck sales overall sales fell 7% compared to 2016.
As with most Wall Street headlines, they only paint a small portion of the big picture. Ford is a 113-year-old company with profits in the billions, and a stable and extremely healthy balance sheet. Not only that, but the Blue Oval is in a much better position when it comes to debt and liabilities compared to the only 14-year-old Tesla. According to public filings, Tesla is deep in debt but has enjoyed a rising stock price since December of 2016, which can only mean one thing — investors are still banking on Tesla to become a serious player in the future of mobility.
After this week’s stock market shake up, Ford has a market cap of $44.89 billion, while Tesla’s is $47.6 billion, and General Motors at $51 billion.
Chime in with your thoughts on the forum. >>