Tesla Is Now the Most Valuable U.S. Car Maker of All Time
January 07 2020 - 03:40PM
Dow Jones News
By Karen Langley
Tesla Inc. shares have surged to start 2020, helping the
electric-car maker become the most valuable U.S. auto maker
ever.
The company closed Monday with a market value of $81.39 billion,
surpassing Ford Motor Co.'s peak of $80.81 billion set in 1999.
Tesla shares continued climbing Tuesday, rising 4% to $469.36 and
extending their gains for the year to 12%.
Tesla was already valued at more than the record market cap of
General Motors Co., pre-bankruptcy or in its current form, and that
of pre-Daimler Chrysler or Fiat Chrysler, according to Dow Jones
Market Data.
The company's market value still trails rivals Toyota Motor
Corp. and Volkswagen AG, which were valued at $227.90 billion and
$98.65 billion, respectively, at Monday's close.
Tesla's milestone marks another sign of evolution in the
automotive industry. Many investors see Chief Executive Elon Musk
as a visionary. Tesla said Friday that it had met Mr. Musk's goal
of delivering at least 360,000 electric vehicles in 2019.
"We believe this new solid quarter of deliveries could further
put to rest investor concerns around softening demand for Tesla's
product," Emmanuel Rosner, lead auto and auto technology analyst at
Deutsche Bank, wrote in a report.
The company still faces obstacles: It has yet to turn an annual
profit and its fortunes rest largely on how it performs overseas,
particularly in China.
Tesla shares have been volatile: They lost half of their value
between Dec. 13, 2018, and June 3, 2019, but have since more than
doubled. Challenges that weighed on the company last year included
problems delivering vehicles and an investigation by the Securities
and Exchange Commission into Mr. Musk's use of Twitter.
The company said Tuesday that it is starting work related to
production of its Model Y compact sport-utility vehicle at
Gigafactory Shanghai, Tesla's first overseas plant.
Write to Karen Langley at karen.langley@wsj.com
(END) Dow Jones Newswires
January 07, 2020 15:25 ET (20:25 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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