After the soaring stock in the previous session, Tesla has overtaken the “Big Three” in the automotive industry in terms of market capitalization. The Palo Alto, California based company surpassed General Motors, Ford Motor Company and Fiat Chrysler as the Tesla was noted for its captivating impact on consumers and shareholders alike.
Tesla Leads the Way
With the current market capitalization of $51.54 billion and stock climbing at 312.00 levels this month, Tesla will likely sustain the bullish tone in this quarter. The future potential of the Company was highlighted recently after its successive upbeat financial reports for its fourth quarter and full year 2016. Its 2017 was well positioned on the anticipation for its Model 3 production this July, with an already considerable number of pre-orders. Adding to the impressive performance of the Company was the grip of CEO Elon Musk on the acquisitions of SolarCity and Grohmann Engineering to build sustainable energy and to improve the manufacturing processes respectively.
Even the major research firms saw the leap of Tesla, which convinced most of them to upgrade their rating for the Company. The American auto-giant couldn’t just be ignored with its established vehicle technology, energy story products, reduced service backlog, operation expansion and growth rate.
In the recent earnings report of Tesla, the orders for the Model S and Model X reached a new record high with combined 49 percent jump on global net orders. For the quarter ended in December 2016, the company had total revenue of $2.28 billion, with automotive revenue of $1.99 billion. Amid the unfavorable exchange rate changes during the quarter brought by the widely expected rate hike from the Federal Reserve, Tesla managed to invest $522 million in capital expenditures for Model 3 manufacturing capacity, Gigafactory 1, and expanded customer support infrastructure.
The upcoming Model 3 is anticipated to ramp production to exceed 5,000 vehicles per week at some point in the fourth quarter and 10,000 vehicles per week at some point in 2018.
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Tesla’s Stock Performance
Tesla Inc. (NASDAQ: TSLA) touched its one-month high and at the same time the peak in the last three months on Monday’s session. The stock hit 3.26 percent higher to $312.39 after opening at 309.15 with a session high of 313.73 and a session low of 308.70. The current range of the stock was above its 20-day SMA of 304.21 and 50-day SMA of 297.76.
In January the stock commenced at 220.00 levels and settled at 279.00 levels at the end of March. Apparently, the estimated 59 points added to the stock will likely bring positive figures in the next earnings data of the company. Speculators believed that Tesla could hit as high as $500 in the current quarter in light of its bullish pattern. The Company is estimated to report quarterly earnings on May 3, 2017, the earnings date is still subject to revision with no actual date announced. Zacks Investment Research released a consensus EPS forecast of $-0.67.
On the other hand, General Motors settled at $33.97, rising 0.77 percent, with only $50.22 billion market capitalization. The stock previously opened at 33.84 with a session high of 34.12 and a session low of 33.80. The Detroit Michigan based company is currently taking the big step in self-driving technology with the debut of its Super Cruise this fall.
Ford Motor Company closed at $11.25 with a market capitalization of $44.64 billion. The stock has been in a tight range and would probably turn bearish as it falls from 12.50 levels to 11.00 levels. Despite the positive commendation on Tesla nowadays, Ford remained firm on its commitment to invest $4.5 billion to launch 13 hybrid or electric vehicles over the next five years. The Dearborn, Michigan based auto firm also launched its eighth hybrid or electric vehicle, the Ford Police Responder Hybrid in hopes to meet the 550,000 electrified vehicles sold since the original Ford Escape hybrid came on the market in 2008.
Meanwhile, Fiat Chrysler Automobiles was also down at $10.09 after opening at 10.12 with a market capitalization of only $15.41 billion. It has a day range from 10.05 to 10.20 and a 52-week range from 5.45 to 11.63. The weakening momentum of the stock was amplified by its sales decline in the first quarter of 2017 and the 7.4 percent decline last week.
The number of deliveries, innovation across the storage product and energy generation, and the timing of the acquisitions and partnerships have brought a significant impact on the growth of the Company. Even before this leap of Tesla, the market has been putting so much faith in Tesla, boosted by the appointment of Musk as one of Donald Trump’s advisory council. The long-term plan of the Company only revolves around its electric and self-driving cars; however, the competition along the way creates a bumpy road. The pressure will remain on Musk to move ahead in the new era of the automobile industry and to make the Company’s target as realistic as it could be.