Wow, how things change. Ten months ago, I wrote an article after Morgan Stanley’s Adam Jonas declared to investors that he felt that GM’s EV business was worth $100 billion, while offering an opinion that the business should be valued at $60 billion. Let’s revisit my original article briefly, and … [continued]
Morgan Stanley auto analyst Adam Jonas thinks GM could be worth $100 billion — someday. He also thinks Tesla stock will give up a third of its recent gains. Is he right?
Barron’s noted on January 7th, 2020, that Tesla had become the most valuable auto company in the history of America. Let me repeat: Not just currently. We are talking about the most valuable American auto company since America was born. Congratulations to Elon, Tesla, and the team for unlocking this achievement!
Currently, Tesla has a market capitalization of $62.71 billion, whereas GM is only valued at $48.58 billion. However, keep in mind that in 2009, GM fell to a value of $1.06 billion. Many economists are starting to predict another recession on the horizon. Moreover, self-driving taxis could take annual global demand for cars from 88 million to a notably smaller fraction of that. Even if that does not occur, the largest car market, China, is rapidly switching to electric. It appears that GM is flatfooted and not prepared for either scenario.
Another one bites the dust.
For decades, electric cars have been a dream of the future. Magazines showed show cars and experiments, but fielded few or no production examples. During periods of high oil prices, their prospects rose, but as oil prices declined, they faded. Tinkerers and DIY mechanics made home-built lead-acid gas car conversions. There were tantalizing forays stimulated by California’s CARB ZEV (zero emission vehicle) mandates, like the GM EV1, Toyota RAV4 EV, and Honda EV Plus, but they were in limited numbers and more often offered for lease but not for sale.
Tesla’s stock has been experiencing a rapid fall in recent days, with the stock price hitting a low not seen in more than a couple of months. The Tesla stock’s market cap now totals “just” $48.58 billion. Since we previously wrote about Tesla becoming more valuable than any of the Big 3 automakers, it seemed fitting to correct the record and update the comparisons.
Let’s be honest, comparing Tesla to conventional automakers like GM, Ford, and Fiat-Chrysler Automotive is a little unfair — the “Big 3” don’t sell solar roofs or energy storage systems, just cars.
Everyone and their mother seems to be discussion Tesla and its tremendous stock surge right now. Here’s a quick summary of some astounding facts regarding Tesla Motors’ stock, as well as a short diatribe on the #1 reason why Tesla’s stock grew to such an astounding level so fast (via … [continued]
