Tesla Valued More Than Twice As Much As Ford And 44 Percent More Than GM

Tesla Motor’s share prices have been soaring lately, having reached $425 per share, an all-time high for the Palo Alto-based car maker.

That means Tesla’s worth, which is usually represented by market capitalization or the current stock price multiplied by the number of shares, stands at $75.56 billion or about 44 percent higher than that of General Motors at $52.54 billion and twice as much as Ford Motor Co at  $37.43 billion (all figures as of December 25, 2019).

The numbers tip even more towards Tesla Motor’s favor when you look at the enterprise value (EV), which according to a Yahoo Finance report citing Morgan Stanley’s estimate, stands at $85 billion.

“For comparison, the combined EV of Ford and GM (defined as market cap plus net industrial debt, excluding pensions) is less than $80 billion,” Morgan Stanley analysts Jonas and Sinkevicius said in a note. “By this definition, Tesla isn´t just the most valuable US auto company… but it´s worth materially more than GM and Ford COMBINED.”

Tesla’s shares are up by 75 percent in the past three months as investors believe that the company will gain a very significant market share globally in the years to come. The company is already starting series production in a new Gigafactory in China while it plans to adopt a more aggressive strategy in Europe.

Related: Elon Musk Makes Weed Joke As Tesla Shares Hit $420

Despite the huge market value disparity, General Motors remains the world’s fourth largest car company, with a revenue of $36 billion in the third quarter. Tesla’s revenue over the same period was $6.3 billion.

As noted by 24/7 Wall st, part of the reason behind Tesla’s insanely high market value is that investors see the California-based automaker as the future of the automotive industry, focusing solely on electric cars and automated-driving technologies. Legacy auto makers have only recently started working on their EVs, leaving Tesla alone with an available lineup of EVs to claim the lead in the race to a zero-emissions future.

Tesla’s faster-than-expected progress in China together with announcements like being ahead of schedule for the Model Y and a new Gigafactory outside Berlin in Germany have helped stock prices reach historic highs and whether this trend will continue in 2020 is dependent on which side of the fence you’re sitting. Analysts are split between those who claim that the targets set by the company are overly optimistic, particularly for the Chinese market, while others claim that the EV maker will not only retain its lead but will dominate the EV market worldwide.