Tesla is now bigger than Ford! Next is: GM

Tesla is now bigger than Ford! Next is: GM

Dramsey | 27 mars 2017

In case anyone's wondering, the OP is probably talking about market capitalization, the number Rrived at by multiplying the current stock price by the number of outstanding shares.

And Tesla did indeed just edge over Ford.

How useful this is as any sort of metric is something you get to decide. FWIW, Ford produced over 3.2 million vehicles last year, Tesla produced about 84,000. So every time Tesla sold a car, Ford sold 38.

Silver2K | 27 mars 2017

it seems many get that all mixed up. | 27 mars 2017

Another way to look at it is for each great Tesla vehicle sold that often creates a lifetime customer, Ford sold 38 mostly average cars that many of those owners will likely to ditch when something better is available (i.e. low brand loyalty). | 27 mars 2017

Ford is "bigger".
Tesla aggregate stock value is greater. There is a lot of optimism about the future of Tesla in this valuation that can fluctuate greatly with good and bad news.

NKYTA | 27 mars 2017

Well, and Ford isn't doing solar, powerwalls or batteries, either. So there is that.

Mike83 | 27 mars 2017

Advertising budgets from last year.

Oh and political budgets.

Not sure how much on lawsuits like GM ignition switch caused deaths, Ford rollovers, gas tank leaks and fires, etc.

Possibly more costs?

Efontana | 27 mars 2017

Math says: Ford spends 30X on lobbying.

vp09 | 27 mars 2017

What does it all mean.

Where is Ford's Vision for the Future.

I'll go with Elon.

Al1 | 28 mars 2017

Stock market clearly values innovation over produced units of whatsoever. We probably don't want to compare US Steel to some advanced chip maker based on steel they produce.

An analyst (Adam Jonas) who says Tesla autopilot machine learning will render all other cars obsolete.

jordanrichard | 28 mars 2017

This notion of "size" being measured by stock value is a sad commentary on how we measure things. Nothing, and I mean nothing has any monetary value, until someone puts cash in your hand.

SamO | 28 mars 2017

Every time Tesla sold a vehicle, it was worth 3 Fords. Thus Ford only sold about 10 times the value of vehicles sold by Tesla.

Fast Girl | 29 mars 2017

guys, there you go arguing about SIZE again........ hee hee hee, you know what I mean.
Can you translate this into what it means to have larger market capitalization? Is it going to influence my decision on which Tesla to buy? :-)

SamO | 29 mars 2017

Probably not. Except that it has a valuation similar to Amazon or Netflix because it is doing something truly revolutionary. Buying a Tesla could be at greater financial risk if the company has a low value, thereby making service interruption in the future due to financial problems, more likely.

So yes, a good valuation is good for car owners as well as shareholders.

trx430ex | 29 mars 2017

It is not, about,the, cars,, it is about the energy storage in any form car powerwall, pac. @ 2.5 gigawatts of energy storage a year in 2020. That if could go to and fro from each other in mobile, that is a trillion dollar valuation. Take all the cars and throw them in the trash, it is the mobile energy storage that will rise as a new ceiling above OPEC. The US uses, lets round to 100 quads of energy, so much low hanging fruit, which industry do we destroy first?

trx430ex | 29 mars 2017

Westinghouse just declared bankruptcy, they had projects in the UK for how much $ per gigawatt? Just ripe for the pickings to put Westinghouse in the the grave. Edison can not save Westinghouse now, here is looking at you GE, nothing in the pipeline, your legacy days are numbered too.

Mike83 | 30 mars 2017

Westinghouse pushed into bankruptcy due to NUCLEAR fiasco.

SamO | 30 mars 2017

Guess Tesla will have to produce and store the clean energy itself.

Nugget | 4 avril 2017

Ford sold 6.65M vehicls in 2016 with a bit over $150B in revenue.

SO | 4 avril 2017

And how much does Ford owe in debt and pensions?

Nugget | 4 avril 2017

Do you want to include their captive financing arm?

Payables $ 20,272 $ 21,296
Other liabilities and deferred revenue 19,089 19,316
Automotive debt payable within one year 1,779 2,685
Financial Services debt payable within one year 41,196 46,984
Total current liabilities 82,336 90,281
Other liabilities and deferred revenue 23,457 24,395
Automotive long-term debt 11,060 13,222
Financial Services long-term debt 78,819 80,079
Deferred income taxes 502 691
Total liabilities 196,174 208,668
Redeemable noncontrolling interest 94 96

Al1 | 5 avril 2017

How useful this is as any sort of metric is something you get to decide. FWIW, Ford produced over 3.2 million vehicles last year, Tesla produced about 84,000. So every time Tesla sold a car, Ford sold 38.

@Dramsey, if stock value was not a useful metric it would not not be weighted so heavily on company executive's compensation. Stock in general is a measure of market sentiment about the future of the company. Its ability to generate innovative ideas and execute on them. And just a few years ago common wisdom was cars had no place for innovation. Everything has already been invented. It might have been true for incumbent players like Ford.

Stock price has direct impact on cost of capital for the company which has direct impact on ability to bring new models to the market. Also big shifts in stock price certainly have impact on sales.

These are historic days for sure.

Al1 | 5 avril 2017

And how about attracting talent? Or better deals from suppliers?

While I would not overplay the role of stock price, I would certainly not downplay it either.