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Tesla now more valuable than Ford

Green beans: Tesla delivered 250,000 emissions-free Model S and Model X vehicles in the first three months of 2017, pushing up its stock market valuation.

Tesla valuation reaches $US48.8 billion due to stronger than expected 2017 Q1

Tesla logo4 Apr 2017

By TUNG NGUYEN

ALL-ELECTRIC car-maker Tesla has surpassed the Ford Motor Company in valuation on the stock market, reaching $US48.8 billion ($A64.15 billion) and making it the second-highest appraised US automotive manufacturer, according to US NASDAQ exchange.

Tesla now trails only General Motors – which has a market capitalisation of $US51.3 billion ($A67.44 billion) – with yesterday’s 7.27 per cent jump in share price placing the tech start-up company $US3.2 billion ($A4.21 billion) ahead of Ford’s $US45.5 billion ($A59.81 billion).

The jump in Tesla’s stock prices comes on the back of a recent announcement that deliveries of the Model S luxury sedan and Model X all-electric SUV have reached 25,000 for the first quarter of 2017, well above investor expectations.

According to Tesla’s 2016 financial results update letter, “we expect to deliver 47,000 to 50,000 Model S and Model X vehicles combined in the first half of 2017, representing vehicle delivery growth of 61 per cent to 71 per cent compared with the same period last year”.

2016 also saw Tesla’s revenue rise to $US7 billion ($AU9.2 billion), an increase of 73 per cent over the previous year’s figure, with gross profit amounting to almost $1.6 billion ($A2.1 billion).

Production of Tesla’s mass-market Model 3 is also about to kick off this year in July, with plans to churn out over 5000 mid-size electric vehicles (EVs) a week by the end of 2017 and up to 10,000 a week in 2018.

In addition to vehicle production and sales, Tesla’s business is supplemented by its Powerwall, inverter and Powerpack battery storage solutions and the upcoming release of its Solar Roof in the fourth quarter of 2017.

Ford on the other hand, saw its stock slip after two recent recalls – one affecting 230,000 1.6-litre GTDI equipped Escape, Fiesta ST, Fusion and Transit Connect vans, and the other encompassing 52,000 F-250 US-market pick-up trucks – and news that its 2016 US sales dropped seven per cent compared to 2015.

However, Ford’s 2016 revenue reached $US151.8 billion, with adjusted pre-tax results hitting $US10.4 billion, on the back of producing 3,230,842 passenger cars for the 12-month period.

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