Tesla has become the largest carmaker by market capitalization, surpassing GM and Ford.

For the first time in history, Tesla’s stock hit a record high, the largest market capitalization of the US car industry. Even Tesla’s market capitalization is bigger than both GM and Ford combined.

Tesla shares rose 5% on Wednesday, reaching a record high of $ 492.14 per share and raising its market capitalization to $ 89 billion. Meanwhile, the two US car giants General Motors and Ford are worth 50 billion USD and 37 billion USD, respectively.

The reason for the strong growth of Tesla is the surprise profit in Q3 / 2019, the opening of a new factory in China and the good delivery schedule in Q4 / 2019. Tesla’s stock has more than doubled in value in just the past 3 months.

Compare the market capitalization of Tesla, GM and Ford.

However, experts say that Tesla is still being identified as a technology company, instead of a car manufacturing company. GM and Ford delivered more than 2 million vehicles in the US last year, but Tesla delivered only 367,000 vehicles worldwide.

Therefore, investors are still concerned that Tesla can maintain profit and cash flow growth. Meanwhile, traditional carmakers are also starting to enter the electric car race, competing with Tesla.

Reference: reuters