Tesla is a luxury electric-car company that has struggled for many years to sell cars against major competitors, making minimal profits and struggling to secure profits.
However, on Saturday, April 8, Tesla surpassed General Motors (GM), and earned the title of the “most valuable American car company” based on the stock-market.
Recently, shareholders of Tesla stated that the value of the company had reached $51.5 billion, beating out GM who was valued at $50.2 billion. Ford didn’t even stand up to the two other companies with their company value last week only hitting an estimated $44.6 billion. However, when compared to GM, Tesla still has a minimal number of cars that are actually on the road.
Tesla, based out of Silicon Valley, CA, is run by chief executive, Elon Musk. The company managed to produce 84,000 cars in 2016 with prices starting at about $68,000. Musk also assured the public that the company will produce 500,000 in 2018, hoping to increase productivity on a yearly basis.
The American economy is currently split which has worked to the advantage of Tesla, resulting in them being able to access drivers who can afford to purchase electric luxury vehicles. However, Tesla has also experienced various production issues, which has prevented them from reaching their ideal numbers.
Due to the current increase in Tesla’s stock-market numbers, Musk has become one of the richest people in the United States in recent months, giving him more influence in the industry. However, Tesla’s successes happened quickly and without warning, and some skeptics say it’s a matter of time before they fall from the top.
Regardless, Tesla is performing well on Wall Street and only time will tell if they will remain at the top.