Tesla Overtakes GM As America's Most Valuable Car Company

Tyler Durden's picture

It's official - for the first time ever, Elon Musk's government-subsidized car-maker is America's most valuable auto manufacturer.

Tesla shares surged another 1% today, amid a continued "trouble in shortville" ramp, topping $300 for the first time...

That gives the company a total value of $52.7 billion.

That's more than GM's $49.6 billion valuation. Tesla chief executive Elon Musk says he expects the company to sell 500,000 cars next year. GM, meanwhile, sold more than 20 times that many last year.

"If you look at the different auto companies on paper, it does seem a bit proposterous, where Tesla is at this moment, versus some of the more established auto companies," Jessica Caldwell, director of industry analysis with automotive research firm Edmunds, said in an interview with CBC's On The Money on Monday.

Tesla sold 76,285 cars last year. That compares to over 10 million for GM worldwide and 6.65 million for Ford.

"I think Tesla has had a very high market cap for a long time, so I don't think this comes necessarily as a surprise, but when you compare it to someone like Ford [or GM] who has a wealth of resources, it does seem a little out of whack," Caldwell said.

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MFL5591's picture

When it goes up this easy, it will crash the same!  Junk product!

Haus-Targaryen's picture

HGTV dedicates some 30% of its air time right now to house flipping shows. 

The end must be near now. 

Looney's picture

 

Tesla keeps Dr. Kevorkian’s legacy alive. Their cars are “assisted suicide” vehicles.  ;-)

Looney

gladih8r's picture

I was in a Tesla cab the other day in Amsterdam.  I asked the cabbie what he thought of Teslas - wanting to get an opinion from someone who drives it for a living.  He said they are junk and that he'd prefer a Mercedes over a Tesla any day.

Now the cabbie was a muzzie, but putting that aside, he does log a lot of miles on the cars he drives, so there is that to consider.

Falconsixone's picture

Shit on a good mans name. I'll never buy one just for that reason. I guess the Musk Mobile or Motors would stink.

He could be replaced by a ball of yarn.

Pinto Currency's picture

David Stockman:

Elon Musk----King Of Crony Capitalist Pretenders Has Ripped-Off Taxpayers For $4.9 Billion

http://davidstockmanscontracorner.com/elon-musk-king-of-crony-capitalist...

jcaz's picture

Well gee, Elon- if you're doing so well, guess you don't need that government money anymore, huh?

Countrybunkererd's picture

Dear ZHers:

HELL HAS OFFICIALLY FROZEN OVER!

Automatic Choke's picture

I want one.   I'll put it in my classic car collection, right next to the DeLorean Snowmobile.

Overfed's picture

A friend of mine, retired chemist, just bought a Nissan Leaf. Paid about 20% of what they get for a Tesla S. Loves it. But, he bought it for basic around town transpo, not as a status symbol.

zippedydoodah's picture

One of the worst depreciating cars in the UK. It retains just 40.3% of it's list price after one year.

https://www.topgear.com/car-news/list/britain%E2%80%99s-ten-biggest-depr...

silverer's picture

I think he's evaluating differently than most people. Which car would smash through a roadblock best if you floored it? Which one offers the most protection when you're being shot at and least likely to burst into flames? Yeah. Probably the Mercedes.

legalize's picture

Who the hell says that GM is not government subsidized?!?!?

logicalman's picture

I'm thinking both can be run into a tree remotely, so they're even on that 'feature'.

zippedydoodah's picture

Princess Di didn't fare very well in her Mercedes.

remain calm's picture

They will make cars that take you to the moon, problem is they won't come back. good luck on your trip

SubjectivObject's picture

"A woman can take you to another Universe; sometimes she just leaves you there."

Hitlery_4_Dictator's picture

This is obviously a cruel joke.  Every time I turn on the radio it's nothing but ads for house flipping, used car sales, bankruptcy help, custom home builders and roof repair.  The end is near. This is exactly like 2006 - 2007.

Countrybunkererd's picture

I figure it this way, GM or Ford could put 10% of their engineers onto the path of "musk's dream" and do at least as well within a year or two... oh, and have the ability to produce the product on time per demands.  But, but it is a tech company or something!

Countrybunkererd's picture

I am all for improvements, but electric cars is a no go, period.  I want to see that fuel cell GM made about a decade ago come to life.  THAT is progress.

Wrenching Away's picture

Fuel cell cars ARE electric cars.

venturen's picture

Telsa model s is the 3rd best selling plugin---in the USA....toyota and GM out sell it.

Countrybunkererd's picture

see how little i care about electric cars... i didn't know that.  learn something new every day...but i still don't care.  I hate the prius but i do support hybrids to make things faster and whatnot.  The eco friendly part is a complete lie.

But to your point.  IF tesla was so on track with reality, why can't they (ALL auto makers) sell more, and why aren't all cars going this route in every model?  What percentage of cars would have to be electric for brownouts to start happening every day?  It will NEVER work, other than a symbol of how stupidly "hip" people can be.

Yukon Cornholius's picture

Strange how "Cash for Gold" ads have fallen by the wayside. I guess they got it all on the first go round. It used to be every viagra ad was followed by a cash-for-gold scam.

Consuelo's picture

 

 Than Merrill, Nick Vertucci and a few other less prominent names in the 'flipping space' have been all over the radio for the past 3+ years at least.    The insanity is carrying on way longer than I would have ever imagined.   By 2012 in the Bay Area, valuations blew past 2006 peaks like they were in reverse.   Today, especially in the pricier enclaves, there is absolutely no relation to anything heretofore seen.  

SILVERGEDDON's picture

Funny - a study done on the carbon footprint for a Prius versus a Hummer H-1 diesel truck gave the win to the Hummer for being the cleaner of the two from start to finish. Unpleasant realities like mining for battery componemt metals, ocean freighter rides for raw materials and finished product, absence of regulations for battery manufacturers in China, the source generating electricity for most of the USA still being coal, and disposal of the battery during and after the service life of the car make the Prius a filthy little eco nightmare. 

Soccer moms, schoolteachers, and hip millennials are practicing ecological genocide every fucking time they go for a ride.

That makes a Tesla owner the smug ecological moral equivalent of Hitler, Stalin, Mao, or Pol Pot. 

Who knew ? 

SILVERGEDDON's picture

There isn't enough electricity being produced to run Muskie's toy cars as full transportation replacement, even factoring in all coal fuel generating plants in the USA.

Factor in that small problem, and absent some breakthrough reality like cold fusion, or water fueled fuel cell generation, and Houston has a problem.

Elon's shit boxes have the shelf life of a Bakken field frack well.

Or, a balloon at a porcupine orgy.

Or, a Ponzi scheme.

post turtle saver's picture

as opposed to all the other US govt subsidized car makers...

Still Losing Money's picture

I don't think ford has or is taking gov't bail outs/loans

adr's picture

Ford took $3.5 billion in special government loans through the department of energy, the same ones Tesla took, for supposedly building the Electric Focus. Allen Mullaly, the serial government grifter, used his connections to scam billions.

The electric Focus is the original unicorn car.

post turtle saver's picture

yep, and as you can see the Ford Kool-Aid runs deep in the veins of many people... fools, all of them, they all took/take subsidies... when they aren't doing that they're taking tax breaks...

enfield0916's picture

Both companies should change their domain from .com to .gov since the taxpayer funded a big chuck of their "capital" through subsidies and bailouts. What a croc of shit these 2 car companies and their products are. Fucking morons for CEO's!

LittleGreenMan's picture

The valuation may be unreasonable, and you might argue about gov't subsidies (even though the gov't has bailed-out all of the other car co's except Ford), but how can you call their products junk?  They are of very high quality and highly innovative.

icedoc's picture

Don't forget, now.

BTFD

City_Of_Champyinz's picture

Oh man what a fucking joke.

FreeShitter's picture

Totally laughable....zuckercuck, bezos and now musk ...

Rainman's picture

TSLA latest loss per share 69 cents ... laff track deafening !!

Yen Cross's picture

 Did I forget to mention I shorted nasdark last week? This is a macro trade that I'll be adding to.

SloMoe's picture

This is the "AOL buys Time-Warner" moment we'll always remember...

small axe's picture

can't wait for the bailout

orangegeek's picture

no bailout - nigga's gone

Still Losing Money's picture

musk is ALREADY getting bail outs

spastic_colon's picture

maybe becuz they're supplying actual demand and not just pounding out cars and shipping them to a desert parking lot / s

ParkAveFlasher's picture

Subsidized supply is simply a mirror image of subsidized demand. 

This is fiat-driven distortion at its unmitigated finest.