Tesla Has Just Become More Valuable Than Ford


In addition to electric auto engines, it is working on battery technology with applications in the home and for businesses, says the BBC, and it owns SolarCity, a solar power and energy storage company.

In his vision, Tesla is going to change the world, and is primed to cash in on the two transformative trends in the industry: the shift to electric vehicles as part of a broader societal move to cleaner energy, and the advent of automated driving.

Tesla Inc (NASDAQ:TSLA) has become the second most valuable company in the automakers sector as far as market capitalization is concerned.

In other Tesla news, VP John Douglas Field sold 1,000 shares of the business's stock in a transaction dated Tuesday, January 10th.

Tesla Motors has moved to within striking distance of becoming the largest U.S. automaker by market capitalization, a testament to Wall Street's growing ardor for Silicon Valley at Detroit's expense. It is being predicted that Tesla will be able to sell nearly 500,000 vehicles a year by 2018.

According to commentators, while GM and Ford could boast of strong profits and healthy balance sheets, Tesla offered something investors loved much more - the potential for dramatic growth.

The firm has announced plans to launch a Model 3 this year, a cheaper vehicle created to appeal to a wider audience than its premium models. Ford had registered an annual revenue of US$ 151.8 billion past year compared to Tesla's corresponding figure of US$ 7 billion. In 2016, the company generated revenues of $7 billion, sold roughly 76,000 vehicles and remained a loss-making company.

Stock is now moving with a positive distance from the 200 day simple moving average of approximately 34.78%, and has a solid year to date (YTD) performance of 39.7% which means the stock is constantly adding to its value from the previous fiscal year end price. Generally speaking, earnings are expected to grow in coming quarters. Over the trailing year, the stock is outperforming the S&P 500 by 10.12, and it's gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. BlackRock Investment Management LLC boosted its stake in Tesla by 3.2% in the third quarter.

In terms of long-term growth expectations, Tesla scores way above Ford. During the same period previous year, the business posted ($0.87) EPS.

Tesla has a lower leverage as evident by its debt to equity ratio of 1.06, compared with Ford's debt to equity ratio of 3.20. Following the sale, the director now owns 5,600 shares of the company's stock, valued at approximately $1,424,864. The stock is up almost 20% since the "sell" recommendation.