Tesla Is Now Bigger Than Ford, GM, And BMW...

Tyler Durden's picture

With today's near 1% rise to a new record high, Tesla just became the 4th largest (by market cap) automaker in the world - surpassing BMW at over $61 billion.

Tesla passed GM and Ford by market cap in April, and now ranks 4th in the world behind Toyota, Daimler, Volkswagen.

 

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, 6.65 million for Ford, and 2.36 million for BMW.

"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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wholy1's picture

Musk - super fraudster.  It's all CB fiat-debt largess.

JRobby's picture

(using the voice and inflections of Wyle E Coyote)

Elon R Musk, Super Fraudster

youarelost's picture

and no thank you to the tax payers

Iron head's picture

Testla was sanctioned at Builderburg. One of my friends pointed it out to me a few years ago, and said that was his reason for going all in with Testla. I laughed at him. He laughed at me for buying bitcoin years ago too!

PhiBetaZappa's picture

One debt bomb to rule them all

I am Jobe's picture

Based on Bullshit. How about removing the tax breaks and subsidies.

 

Dell reported their earnings yesterday with all fake numbers. All thse companies are just bullshit any  more.

post turtle saver's picture

Dell is a private company so honestly, who cares what the fuck they report... they're not held to the same rules that public companies are (which is why Michael Dell took them private to begin with)

peterk's picture

teslas rise is electrifying:))

Iron head's picture

By the way, everyone, except for a few, laugh at me for having a large stockpile of silver and gold, along with food and guns. We'll see how that turns out!

Silver Savior's picture

Silver is going to turn out to be the real winner after all this huge sorry excuse for a financial system is broken down. It's falling apart as I speak. Still many people can't relate to silver being real money. They will soon find out just how real silver really is.

F1le's picture

LOL, bigger than BMW ... Enron should prepare for hard landing. #1 of shorts. Bears will plunge the stocks to 1$ with such attitude, what I personally would love to see. just Let somebody slip on a banana skin in Tesla and waterfall will be unstoppable.

MrBoompi's picture

Market Cap has not reflected the true economic performance, or true net worth, of a company for some time now, especially the newer tech-related firms.  Speculation made Tesla's market cap larger than BMW's, not anything else.  

south40_dreams's picture

A paper tiger.
And Facebook is bigger than Boeing and Lockheed combined.
What's your point?

Pigeon's picture

FB is supported by the govt to brainwash people. Boeing and Lockheed to kill those who won't comply / aren't FB-brainwashed.

TheSilentMajority's picture

Tesla will go down as the biggest bubble stock of the decade. Ponzi scheme extraordinaire.

They could pop at any time.

Silver Savior's picture

Tesla is just one cog in the wheel of this biggest Ponzi scheme of all time. Nut money is everywhere chasing everything!

Deep In Vocal Euphoria's picture

all a show all a plan.........

 

go ahead and buy your tesla...don't blame me when your car is hacked or when the government shuts it off.

Silver Savior's picture

The only thing I am going to long on Tesla is the company that's going to liquidate what's left of it.

ZZR600's picture

Yes, makes perfect sense! All the auto majors are bringing out electric or hybrid vehicles. I recently saw a chart that showed over a dozen models being launched by 2022. No doubt Tesla will sell cars, but to make it a more valuable company than BMW????

Pigeon's picture

How much is Tesla worth when you take away all the govt subsidies? Do the same for the other car makers. Tesla's business model is wholly dependent upon the govt. Not to say that GM wasn't and shouldn't have gone bankrupt in '09. But that's sort of the point.

adr's picture

ZERO

Tesla cars are built worse than Yugos from the 1980s. Elon banks on everyone leasing the cars because none of them will make it to five years without a complete overhaul. THEY ARE GARBAGE, built with quality matching a KIA from 1995.

Teslas are sold for the rub your face in it factor, nothing more. There isn't a single Tesla driver that needs to drive one. Most probably use more electricity and other fuels in their home than 100 middle class people.

If you see someone driving a Tesla you can be 99% sure they are either a raging bitch or complete dick.

knotjammin2's picture

It 's a good time to take a look at who is holding Tesla stock.  Maybe something to do with backing their required reserve.  Take a $2.00 stock, inflate it to $20.00 and I can pull $18.00 from the vault.  What's going on is nothing more than smoke and mirrors.  It doesn't end well. 

meditate_vigorously's picture

Who knew that bribing the government is more profitable than making products? I mean besides Elon Musk?

shovelhead's picture

I had no idea that there was that many people willing to get their balls sliced off holding TSLA.

Maybe the guys who bought at $25 might be ok.

Biffkenson's picture

Michael we're bigger than US Steel.

Pigeon's picture

Tesla = Tulip in Dutch

Nesbiteme's picture

I bet Ivar Kruger is down in hell right now boiling with envy.

Thom Paine's picture

Tesla is a ponzi scheme of the Lord of the Rings proportions

Fahq Yuhaad's picture

It's a money laundering scheme like modern art.

PontifexMaximus's picture

BMW can issue bonds on var. basis at 25 bp +. never understood, why they are not closing or reducing their r&d, taking up debt and just buying tesla. strange times.

Consuelo's picture

 

 

"If you look at the different auto companies on paper, it does seem a bit proposterous"

 

Rhinoceros...!!!  

1.21 jigawatts's picture

GM needz ta figger out how ta give birf to mo o dems welfare babies. 

Maybe GM could twerk fo' Tesla and Tesla could be GM's baby daddy.

moorewasthebestbond's picture

Nice weekend for a car-beque.

tripletail's picture

Wow! Now, we have fake market cap to go along with our fake news. Very nice, indeed! /s

tuetenueggel's picture

the logical follower after fake money + fake PM ( ETF ).

Deplorable's picture

Here's a few thoughts off the top of my head, feel free to add anything I may have overlooked.

Electric cars run on electricity generated from fossil fuels and some renewable energy, but mostly fossil fuels. That's the secret hidden in plain sight. Most consumers erroneously think Teslas electricity is an independent free power source from the sun using the network of recharging superstations. In reality, the vast majority of Teslas will be recharged every day in the garages of their owners. And thats assuming you have a garage to install your high end charging station in. Where will all those millenials install their charging station if they live in an apartment?  Will they have to run extension cords out their doors to their parking lots hundreds of feet away?

Assuming the majority of Teslas are plugged into the grid for recharging, you've blown your clean energy arguement all to hell, because all you are doing is generating power at a fosssil fuel plant, polluting the environment, and losing a shitload of electrical energy as it passes through the grid and flows into your Tesla throught the 100 foot extension cord going out to you parking lot.

So now your arguement is that you will use the network of Tesla Supercharger stations to charge your car enroute to your destination.  That will work out well when you have half a million Tesla owners competing for space at a handful of charger stations in fixed locations that are off the beaten path between your home and your final destination. Make sure you have a pitchfork in your car so you can deal with all the other owners that are hogging space at the charging stations while they chug a latte at the local Starbucks.  

And lets talk about energy efficiency.  In sure if you had half a brain you would realize the electrical energy transmission seriously degrades as the temperature decreases. This will seriously impact the expected range of a Teslas that is operating in sub zero temperatures in northern states or Canada. I'm sure many of you have had the unfortunate experience of finding your battery dead on your conventional car after a cold winter night.  Well, you can expect that to happen in spades with a gigantic lithium battery, and it will take more than a jump start from a friendly motorist to get you going again.

Here's a new wrinkle for you. AAA is raising premiums on Tesla vehicles by 30% after data showed that owners of Model S and Model X cars filed claims at abnormally high rates, and that those claims cost more compared with other cars in the same class.  AAA’ chief actuary said the insurer noticed the anomaly in its own data before confirming it with data provided by a second source, the Highway Loss Data Institute. Collision damage claims for large luxury vehicles are reported 13 percent more frequently than average, and those claims cost about 50 percent higher than average. The rear-wheel-drive Tesla Model S is involved in 46 percent more claims than average, and those claims cost more than twice the average.

Back to the eco-efficiency argument for a second.  How long do you think it will take before a Teslas battery becomes incapable of holding a charge for more than a few hours.  You may not be aware of this, but a Tesla battery is just a collection of hundreds of battery cells that are equivilent to the battery in you laptop computer. As I type this document, I am doing so on a laptop that I have to permanently connect to its charger because the battery has failed me for the third time since I owned this laptop.  If my battery has died three time in a few short years, how many of those hundreds of battery cells in a Tesla battery pack will also fail in a three year period?  Perhaps you can buy a battery insurance addendum with your AAA policy and roll that cost into the extra 30% for your car insurance to cover this contingency? 

Speaking of batteries, have you given any thought to what you will do with your dead battery pack when you have to replace it every other year?  Lithium is a toxic material, and it should cost a pretty penny to get rid of these batteries and recycle them .  I suppose you could just dump them in San Francisco bay and create a safe zone artifical reef for all the liberals to play in.

Tesla, the biggest example of a bubble stock since pets.com.

 

Iam Deplorable

Pausebreak's picture

Nice post.  One book that I recommend to the acoyltes of Green Energy is "The Moral Case for Fossile Fuels."  Blows to pieces the argument for Green Energy.

https://www.amazon.com/Moral-Case-Fossil-Fuels/dp/1591847443/ref=sr_1_1?...

A. Boaty's picture

Lots of EVs charging at night smooths out the day/night electricity demand cycle. Plants run much more efficiently when they do not have to power up during the day and down again at night.

adr's picture

Millenials can't afford Teslas

Most millennials will never make more than $35k a year if they are lucky. With homes on average costing $250k or more, they ain't owning a home unless both of them work and they won't have much left for shiny Teslas. Even a $35k car is out of range for anyone making less than $50k a year, and sorry snowflakes that Tesla Model 3 isn't going to be $35k.

Teslas cost more to drive than gasoline powered cars for most people

Using your home charger it is estimated that only 70-80% of the electricity supplied actually gets to the batteries, less in the cold. So you waste at least 20% of your money charging your car. Charging a Tesla for 100 miles takes around 30kWh. Using a standard wall charger, since I can't install the high voltage charger in my town, the true cost of charging a Tesla for that 100 miles is $12. I have a very high electric rate of $.28 per kWh. My Accord gets an overall average of 32mpg. At the current cost of gasoline it costs me $7.5 to drive that same 100 miles. Not only does the Tesla cost far more than my Accord, it would cost me nearly double to pay for its "fuel".

If you can afford the fast charger and have electricity rates of the national average of $.12 per kWh, the cost is $4 for 30kWh in the best case. In reality even with $.12 per kWh you have transmission charges, base charges and other fees. Some power companies levy higher charges on people that use excess electricity. Charging a Tesla every night will definitely put you in that category.

Guess what? Tesla batteries have maybe a 5 year life if you are lucky.

The best lithium ion batteries can only charge a few thousand times and lose the ability to hold energy very quickly. After two years it is estimated that the batteries will lose 20% of their charge. Rapid charging degrades the cells faster. You might think that Elon can work magic, but every Tesla pack is just a few hundred laptop batteries wired together. It doesn't matter what you do, those batteries will die and become worthless far sooner than the rest of the car. Another reason why Elon pushes two and three year leases. That way he gets the cars back before most of the batteries go kaput.  

Teslas are dirty to make and charge

Lithium production makes fracking for oil look like pissing in a pond. Yep, all that electricity mostly comes from fossil fuels and nuclear. Charging a Tesla every night will use more electricity than most households use in a day. Mass electric car adoption would more than double electricity consumption. Where will that power come from? How will the grid react? Well the answer is fossil fuels and not good.

Is Tesla really going to displace hundreds of cars and almost the entire luxury car market to justify its market cap?

Total global luxury vehicle sales are around 7 million units. Once you take away under $50k models that number drops to just over 2 million. There simply isn't a market large enough to accept another million car selling automaker. Tesla would have to take 100% of the market share from Audi, BMW, Mercedes, Lexus, Infiniti, Cadillac, Jaguar, etc. just to sell 2 million cars over $50k. That just isn't going to happen. The Model 3 may "start" at $35k but it really is going to be closer to $50k for just about every model. The potential buyer pool of luxury vehicles is not growing worldwide and will rapidly shrink in the future.

 

 

jimmy12345's picture

You are a deplorable because your post is full of inaccuracies and lies.   35% of US electricity generation is from non-fossil fuels and getting greener all the time.  Residential solar systems become more economically if you have an EV due to economies of scale.   Contrary to your assertion, Tesla batteries are/can be recycled and the expected lifetime of Tesla battery packs in hundreds of thousands of miles.   The spirit and the letter most of what you wrote is uniformed, idiotically or maliciously deceptive. 

Deplorable's picture

Do some research Jimmy boy....Don't make stuff up!

About 65% of this electricity generation was from fossil fuels (coal, natural gas, petroleum, and other gases), about 20% was from nuclear energy, and about 15% was from renewable energy sources.Apr 18, 2017

Most of U.S. electricity is generated using fossil fuels. In 2016, natural gas was  the largest energy source for the 4 trillion kilowatthours of electricity generated in theUnited States.

https://www.google.com/search?q=us+power+generation+mix&oq=us+power+gene...

The transmission and distribution or “T&D” system, then, includes everything between a generation plant and an end-use site. Along the way, some of the energy supplied by the generator is lost due to the resistance of the wires and equipment that the electricity passes through. Most of this energy is converted to heat. Just how much energy is taken up as losses in the T&D system depends greatly on the physical characteristics of the system in question as well as how it is operated. Generally speaking, T&D losses between 6% and 8% are considered normal.

https://www.nema.org/Products/Documents/TDEnergyEff.pdf

CRM114's picture

You are missing the obvious.

In 2 years time, Government decides to offer free taxis to all EBT holders. Taxis are autonomous Teslas.

Elon Musk becomes Richest Man in Babylon.

Government politicians and top bureaucrats who pull off this miracle can command speaking fees of $1m a pop.

Only loser is the taxpayer....quel surprise!

https://www.youtube.com/watch?v=oZKUTW5cucQ

A. Boaty's picture

The ChiComs just approved 16 new EV factories. EV not going away soon.

tuetenueggel's picture

When Chinamen will make e-cars in masses, USA will be finally bankrupt.

Gordon_Gekko's picture

Brought to you by your local, friendly Central banker asshole

oldguyonBMXbike's picture

Rape the masses through government subsidy and you too can be number one.

Gordon_Gekko's picture

I have only one question: WHEN IS THIS FUCKING MARKET GONNA COLLAPSE?

oldguyonBMXbike's picture

As soon as the people start hanging CEOs, politicians, bombing media offices and journalists, shooting out power substations and ripping up fiber lines.

 

Or, NK drops an EMP.