Each Tesla Model S Is Worth $3.7 Million In Market Capitalization

We've reported a little while back that the Palo Alto-based company sold 6,457 Model S sedans in the first quarter of 2014. But if you combine those numbers with Tesla's market capitalization of circa $25 billion, that translates to $3.7 million per car.
Tesla Model S and Tesla Motors market capitalization chart 1 photo
Photo: original photo by autoevolution/chart by
To put that into perspective, the Ford Motor Company has a current market cap of about $60 million, with Q1 2014 deliveries of 580,260 cars in North America, translating into $103,401 for each and every vehicle moved.

It boggles the mind how a company that moved less than 7,000 cars in the first quarter is valued by the market at $25 billion, a figure that absolutely dwarfs the GAAP quarterly revenue of $621 million and net income of just $17 million. Keep in mind that the top-of-the-range Tesla Model S P-85 commands a $93,400 base price.

More surprisingly, Tesla's market value has tripled the past year. Why the sudden surge in value? Well, almost every country in the world offers government subsidies and tax incentives to electric vehicle owners. For example, Brits are offered a whopping £5,000 ($8,472) incentive by the government just for buying a brand new EV.

With governments around the world planning to increase EV incentives value, more and more motorists are encouraged to switch from internal combustion to electric drive. And we all know that a company with indirect financial aids from the government is an offer most investors find hard to refuse.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram X (Twitter)
About the author: Mircea Panait
Mircea Panait profile photo

After a 1:43 scale model of a Ferrari 250 GTO sparked Mircea's interest for cars when he was a kid, an early internship at Top Gear sealed his career path. He's most interested in muscle cars and American trucks, but he takes a passing interest in quirky kei cars as well.
Full profile


Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories