Photo: Tesla via Facebook
Now famous electric car maker Tesla Motors, Inc. (market symbol TSLA) yesterday briefly reached a new record market cap of 20 billion dollars during New York trading.
Market valuation is determined by multiplying the stock price by the number of sticks that exist. Tesla shares soared to a new record of $173 before settling at $164 by the end of the day. In pre-market, at the time of writing they are down to $161, but that still means the company is worth over $19 billion.
Investors are paying close attention to every move the company makes and every statement made by the charismatic CEO Musk. Tesla expects to deliver 21,000 cars this year, this despite them costing over $60,000 each.
What's interesting is that the biggest American automaker by sales, General Motors, is only worth $49 billion while Ford's market value is $65 billion. Investors are obviously factoring in a huge future growth spurt for the electric car market. Question is, is a company that only makes one car at the moment really worth a third of Ford?
Investors are paying close attention to every move the company makes and every statement made by the charismatic CEO Musk. Tesla expects to deliver 21,000 cars this year, this despite them costing over $60,000 each.
What's interesting is that the biggest American automaker by sales, General Motors, is only worth $49 billion while Ford's market value is $65 billion. Investors are obviously factoring in a huge future growth spurt for the electric car market. Question is, is a company that only makes one car at the moment really worth a third of Ford?
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