Tesla Passes Ford by Market Value

Post by pc86 » Mon, Apr 03, 2017, 4:29 PM UTC

cmarschner wrote: post #22

John23832 wrote: post #7

Earlier quoted context omitted.

If they can properly pivot into the electric car market, a lot. Ford has all the infrastructure that Tesla is attempting to build now (aside from the batteries, but that is something that Ford could easily partner with another manufacture to get). They know how to mass produce cars (granted right now, ICE cars). That's not an easy feat. They have a large manufacturing and maintenance base that, frankly, Tesla can't r…

Ford (and all the other car companies) has also huge liabilities - a huge supply chain and R&D costs around combustion engines, and costly dealerships that revolve around servicing a hugely complicated contraption made up of hundreds of mechanical parts. Much of this will be of zero value in the near future.

Post by blhack » Mon, Apr 03, 2017, 4:31 PM UTC

ctdonath wrote: post #71

blhack wrote: post #42

Earlier quoted context omitted.

The piece of the puzzle that Ford doesn't currently have is charging stations. Tesla building its supercharger network was a brilliant move because it means that Teslas are comparable to most petrol-fuel vehicles (as far as where you can go), and everybody else isn't. If I buy a Ford, can I drive it to see my family in Northern Minnesota[1]? Because I know that I can take a tesla. That's a really big deal. I know the…

You may want to clarify the non-sequitur there. Yes, Ford doesn't have it's own network of "chargers" (300+ mile recharge in 5 minutes or less), but you know there's a solid network available; in the few places where chargers are lacking, you can easily take extra power units with you (disposably cheap at that). That said, Tesla is pursuing the angle of enabling customers to install their own charging station requiri…

Post by stale2002 » Mon, Apr 03, 2017, 4:33 PM UTC

jernfrost wrote: post #6

Why doesn't this have a huge benefit to Tesla. They always seem to be short on cash, but if you are worth that much shouldn't cash be super simple to raise for Tesla? Why push for high stock prices if it gives little benefits. Seems like a nutty evaluation even if Tesla knocks over the established players in the future. I do in fact think that there will be an iPhone moment where established players who have not take…

Post by adamnemecek » Mon, Apr 03, 2017, 4:34 PM UTC

John23832 wrote: post #74

mbesto wrote: post #47

Earlier quoted context omitted.

> Companies seek to be viable in the future. If Ford or GM feel that an electric car is on the horizon and that car will eat their (ICE) lunch, they will pivot. I guess you could say the same for Kodak, Blockbuster, and Borders? “The reason is that good management itself was the root cause. Managers played the game the way it was supposed to be played. The very decision-making and resource-allocation processes that a…

I've read the book. None of those companies would even acknowledge their competition. Ford/GM/all other ICE companies acknowledge both Tesla, and the fact that there is a clear runway on oil.

Post by Alupis » Mon, Apr 03, 2017, 4:35 PM UTC

dsugarman wrote: post #55

dan1234 wrote: post #2

Interesting, but market cap isn’t everything - FTA: "While Tesla’s market capitalization has swelled in size, Ford still overshadows the Palo Alto, California-based company in most other financial metrics. Over the last five years, Ford has posted net income totaling $26 billion, while Tesla has lost $2.3 billion. Last year, Ford had annual revenue of $151.8 billion compared with Tesla’s $7 billion. And when it comes…

Tesla is potentially a trillion dollar company and it's biggest current hurdle is getting it's production up to meet an enormous demand. The reason it's trading at a higher market cap is because Ford doesn't have any growth potential and Tesla is still trading at a fraction of what it could be. Of course there is still a ton of risk factors for them, but expected value for investing should be based on the chance of s…