The Tesla Motor company has officially passed General Motors and Ford Motor Company as the most valuable automobile company in the United States of America. Tesla motors is now worth $51 billion, compared to the $50 billion worth of General Motors and the $45 billion value of Ford. This change in value is proving to have huge effects on both the stock market of the companies and the image that this news gives to the consumers.
Tesla has evolved over the past three years to become the superpower of electric hybrid vehicles. The company offers a unique design in their automobiles that no other brand has been able to duplicate. Tesla has mastered the art of creating electric cars that work longer and better than other brands. In addition to the incredible functions of the Tesla models, the cars are, as senior C.J Roethler phrased it, “just a simple but incredibly beautiful looking car.” The Tesla models have not only caught the attention of the consumer but also the investors, sparking change in the market.
The New York Times quoted Karl Brauer, a senior editor for Kelly Blue Book, the premier website in online selling of cars. He said, “‘Investors want something that is going to go up in orders of magnitude in six months to six years, and Tesla is that story. Nobody thinks Ford or G.M. is going to do that.’” The stock market has had Tesla Motors on a steady rise over the past few months, while Ford and G.M are in a shorter decline.
The news of the change in stock and investment could mean a few things for the automobile industry. First, G.M., Ford, and Tesla are all still worth near or over $50 billion, making them the colossal forces in the auto industry. With that said, the companies will not be easily defeated by small market shifts or daily stock inclines and declines. Secondly, the change in investment shows that investors are looking towards the future and that the future lives in the electric, clean-powered Tesla models. Third, Tesla models are still priced at over $100 thousand, making them much more exclusive and expensive than models of G.M. and Ford.
The big power three of G.M., Ford, and Tesla will remain in a locked battle for the auto industry. Each company has its unique attributes that will continue to sway the market in different directions, but for these past few months and further on, Tesla will hold the crown.
