Tesla is Now America’s Highest Valued Car Company Ever

Tesla Made In AmericaAfter a successful 3rd and 4th quarter, Tesla Inc. has just surpassed Ford Motor Co. as the highest valued U.S. car company of all time. Ford peaked at $8o.8 billion in 1999 and maintained their title until two weeks ago when Tesla closed with a market value of $81.39 billion. Since then, their value has risen even more to surpass $90 billion, higher than the combined value of Ford and General Motors Co. This week, Tesla’s share price rested around $500. If the carmaker’s share price goes above $554.80, the firm will be valued at $100 billion.

This comes at a good time for President and CEO Elon Musk, who struggled last year with production problems and tanking stocks. At one point, Tesla’s stock sank as low as $179, but their shares have quickly recovered and are now up 180% since last summer. Especially as the demand for electric vehicles (EV) continues to grow, Tesla shares will perform well in 2020. According to a spokesperson at Canaccord Genuity, “these results are a clear indication that EV demand remains strong for Tesla and that the company is well positioned for 2020 with continued positive momentum in all business areas,”.

Tesla’s 2020

Tesla’s success tells of an important shift in the automotive industry towards electric vehicles becoming the norm. Their American models are made at their Fremont, California plant which employs over 10,000 American workers. However, their latest wave of success is coming from overseas consumers–particularly China. In 2018, the company opened another factory location in Shanghai, China. This plant, named “Gigafactory 3”, is already a manufacturing powerhouse. It is soon predicted to be able to produce more than 3,000 Model 3’s per week. Since the automaker’s fortunes rest heavily in how it performs overseas, their success may only be temporary. According to Statista, the company has yet to have a profitable year and ended 2019 with a U.S. automotive market share of only 1.3%. On top of that, some analysts warn that the demand for the Model 3 will lessen now that Tesla’s no longer qualify for the U.S. government’s $7,500 tax rebate for electric vehicles. Nonetheless, they are the leader in the EV market with a share of about 60% and it looks like it’ll continue to grow through 2020.

Along with the tremendous success of the Model 3, Tesla plans to release a few new products in 2020. Musk says that the highly anticipated Model Y, a smaller, more compact CUV version of the Model X, should be available by summer. The original Tesla Roadster put Tesla on the map back in 2011–this year, they’re releasing a newer, faster version of the sports car. Tesla’s website lists it as the “fastest car in the world” with a top speed of more than 250 mph. The automaker also plans to release the long-awaited Tesla Semi in the second half of 2020, which could potentially disrupt the trucking industry and give Tesla an added edge over other EV makers.

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