The electric carmaker overtook GM in market capitalisation last week. Is this just a bubble – or is battery tech the future?
Tesla, the electric carmaker, briefly became America’s most valued auto manufacturer last week when a surge in its share price saw it roar past General Motors. When the stock market closed last Monday, the market value of Tesla (which sold about 76,000 vehicles in 2016) hit a whopping $50.9bn – $64m more than GM (which sold nearly 9.6m vehicles). It had already overtaken Ford earlier in the month.
The punchy valuation for a loss-making manufacturer has divided the investment community and sparked some head-scratching among car-sector stalwarts. Tesla’s elevated profile with investors has brought both acclaim and a new level of scrutiny.