Tesla set to catch up with Ford in terms of market capitalization

Automotive - Mohit Shah - Feb 25,2017

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teslas market cap is catching up with fords

Tesla’s market cap is worth $44.6 billion, while Ford’s is at $49.9 billion and Tesla is all set to overtake 114 years old company; the company aims further growth in the upcoming years.

Tesla, an American automobile manufacturer based in California just requires another 12% to catch Ford in terms of market capitalization.

Ford is the second largest U.S. based automobile manufacturer, preceded by General Motors, and also is world’s fifth-largest largest behind Volkswagen, Toyota, General Motors and Hyundai-Kia in terms of vehicle production. Certainly, Tesla is much smaller than Ford, but it is growing at a much faster rate. Tesla's value increased 30% this year, while Ford's increased just 5%.

Tesla sold 76,000 cars in 2016, while Ford sold 6.7 million cars and truck during the same period. Tesla is expected to report a full-year revenue of about $7 billion, compared with Ford's full-year revenue of $152 billion.

Ford posted a full-year profit $4.6 billion, while Tesla has never reported a full-year profit till date. Its third-quarter profit of $22 million in 2016 was just the second profitable quarter it had since it went public in 2010.

However, Tesla’s future prospect is looking great as the investors are betting with a huge amount of money on the company. The sale of tesla’s first electric mass-market car, the Model 3, is due to go on sale in 2017. Model 3 has a list price of about $35,000 and the company has already received more than 300,000 orders

Other traditional automakers including Ford are now rushing to manufacture mass-market electric cars of their own like Tesla’s Model 3. In January 2017, Ford announced plans to invest $4.5 billion in its electrified vehicle division by 2020. Some of Ford’s iconic cars like Mustang and F-150 pickup may soon have electric versions.

Moreover, Ford CEO Mark Fields had predicted in January that electric and hybrid cars would outsell the purely gasoline-powered cars within the next 15 years.