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Tesla's Shanghai Gigafactory is now producing 3,000 cars per week.
Tesla
Tesla’s Shanghai Gigafactory is now producing 3,000 cars per week.
ACCELERATION

Tesla’s market cap is now double Ford’s, after being eclipsed by it eight months ago

Youyou Zhou
By Youyou Zhou

Things reporter

From our Obsession

Big Tech

Looking at Big Tech as the next Big Oil.

Tesla is doing well.

The electric car maker delivered more vehicles than investors expected in the last quarter of 2019, sending its stock price to a new record. TSLA ended the first week of 2020 above $443 per share. Tesla’s market capitalization is now about $80 billion, more than double that of Ford’s, at $37 billion.

Tesla’s market cap first exceeded Ford’s in April 2017. The two companies started out 2018 at about the same place, with Ford valued at $52 billion and Tesla at $54 billion. Tesla has mostly been in the lead since. Ford’s market cap last eclipsed Tesla’s in April 2019, after the venerable automaker turned out a good first quarter.

Now, Tesla is clearly leaving Ford behind.

Investors have reasons to be optimistic. Tesla delivers far more electric cars than any other brand. Its Model 3 is the most popular electric car in the world, selling three times the number of the second most popular model, China’s BAIC EU-Series, in the first 11 months of 2019.

Like other traditional automakers, Ford is playing catch-up in the electric space. In April last year, it invested $500 million in the electric truck maker Rivian for its battery technology. And in November, it announced its first all-electric car, the Mustang Mach-E, to be delivered to the mass market in 2021.

Of course, plenty of short sellers are still betting against Tesla, but they’ve had a particularly bumpy ride of late, losing $8.4 billion in the last seven months.

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