Tesla surpasses BMW to become the 4th most valuable car company

by Tim Jones on June 9, 2017, 3:35 pm
3vsModel 3

The tiny eletric upstart isn't all that tiny any longer, at least based on market capitalization. While BMW's US sales have been in a slump Tesla sales have steadily pushed forward in the luxury space. Still Tesla sells a tiny fraction of what BMW does so it is an odd thought that Tesla is worth more than BMW.

Quote:
Over the past few months, Tesla's valuation surged past Ford and GM but following another surge over the past 2 weeks, Tesla's market capitalization is now worth more than BMW's.

It is now the 4th most valuable car company in the world.

The feat is hard to understand when just looking at the deliveries of both companies. BMW delivered over 2 million cars last year while Tesla delivered fewer than 80,000 vehicles during the same period.

Yet, as of today, investors value the German automaker at $61.2 billion and Tesla at just over $61.6 billion (at least briefly intraday today with a new all-time high of $376).

Only Toyota, Daimler, and Volkswagen are more valuable than Tesla at this point.
Source electrek.co

What will happen when the Model 3 hits the market? Will it further dampen the 3 Series sales?



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8 responses to Tesla surpasses BMW to become the 4th most valuable car company

acoste commented:
June 9, 2017, 6:42 pm

Reality is that Tesla currently has about 10% of the global EV market share, and about .001% of the global car sales market.
It can only succeed (and survive) if the Model 3 will be successful. Model 3 success is not given since Tesla made some shortcuts in testing the manufacturing process so the quality will be questionable. Also the Model 3 already has a lot of competitors currently on the market. Model S is getting competitors soon from German premium car makers. The market pricing is just a hype and wishful thinking.
LMK5 commented:
June 14, 2017, 4:15 pm

This is clearly a valuation based on a lot of emotion and lofty growth projections. The smallest misstep will really hurt Tesla's share price. The P/E ratio of Tesla shares is -430 now, and 83 based on 2019 projections. Proceed with caution.

I think BMW's main present challenge is in Germany itself. Look at the pricing of an Audi A4, a C300, and a BMW 3-series with similar equipment. The A4 and C300 are both cheaper, have more features, and are updated. What does BMW have to justify the price premium? BMW's pricing seems to be out of control. Right now they aren't doing anything better than their competitors but they're asking their customers to pay more. Customers have noticed as US 3-series sales were down -39.6% in May 2017 vs. May of 2016.
AntDX316 commented:
June 21, 2017, 6:27 am

If you lease a vehicle and don't drive far beyond home but if you do, you don't mind charging up at rest stops I assume Tesla is the best vehicle to get? It's because I think they use top patented space age technology coupled to the vehicle industry. No one can touch it but I haven't done research. I just wonder how they are the only one doing this and no one else can copy like BMW. It makes no sense to hybrid unless it's going to be for a KERS system like Nitrous. Using it to save some gas is stupid imo. I'm not sure if it's cheaper by going hybrid on a lower cyl car than getting one with a higher cyl. If you end up getting that used the batteries don't last as long as Toyota/Lexus and cost way more.
AntDX316 commented:
June 21, 2017, 6:29 am

I mean, the reality could be to be the start of the electric vehicle market. Instead of having say 50 gas stations to 1 Tesla facility it would be more 1:1? It would decrease the need for fossil fuels. I think it's just setting up the world for AI electric 5G. The 5G standard hasn't been released yet but soon to be. Look at the Ericsson seminar about 5G on youtube.
Dio///M commented:
July 5, 2017, 2:09 pm

Elon Musk's growing empire is fueled by $4.9 billion in government subsidies.

Tesla is alive thanks to government generosity. Take the subsidies away, and sales will absolutely crash.
A looming question is whether the company is moving toward self-sufficiency and whether they can slash development costs before the public largesse ends.

Tesla and SolarCity continue to report net losses after a decade in business, but the stocks of both companies have soared on their potential
LMK5 commented:
July 5, 2017, 2:15 pm

Yes, but the future does seem pointed towards electric vehicles. The 800 pound gorilla in the room of course is the range and the charging times, but when/if that comes down to acceptable levels why would anyone choose gas at that point? I do see a surprising number of Toyota fuel cell Mirais around here. At one point fuel cell seemed to be the more promising technology but EV surged ahead.
acoste commented:
July 5, 2017, 2:19 pm

Quote:
Originally Posted by LMK5 View Post
Yes, but the future does seem pointed towards electric vehicles. The 800 pound gorilla in the room of course is the range and the charging times, but when/if that comes down to acceptable levels why would anyone choose gas at that point? I do see a surprising number of Toyota fuel cell Mirais around here. At one point fuel cell seemed to be the more promising technology but EV surged ahead.
I'm happy to see all those Mirais on the road. Wish them good future!
What I don't like about the EVs that their batteries aren't recyclable. And that is the heaviest part of the car.
Dio///M commented:
July 5, 2017, 2:39 pm

BMW has announced that it will have an all-electric 3 Series sedan capable of 248 miles, on display at the Frankfurt Auto Show in September and be available for sale less than a year later...

The company says it has spent nearly $6 billion on electric car R&D recently and will continue to invest heavily in adding electric and plug-in hybrid cars to its selection of models.

When the Tesla 3 goes into production this month, buyers will have a choice of color and wheels and nothing else,....Bmw being Bmw will continue to offer of vast array of choices and keep spoiling their customers...

When government subsidies dry up eventually for Tesla and with strong competition heating up in the all electric sector , (Volvo announced today that after 2019 ALL their cars will be electric or hybrid) Tesla will be in serious turbulent times.
nyca commented:
July 7, 2017, 9:28 pm

It doesn't matter what the electric 3 series is, how good it is. Tesla is a cult. The people who buy the car think they are saving the planet, think Musk is a near deity, no other manufacturer can match that. Have you see the interior of the Model 3, the dash, its a joke - they are still lined up to buy it. Tesla is doing some good things to be sure, like investing in a charging network, battery technology, etc - but other manufacturers who think there are hordes of people lined up wanting full electrics that aren't Teslas, are mistaken.
Matthew424 commented:
July 8, 2017, 10:16 am

Quote:
Originally Posted by nyca View Post
It doesn't matter what the electric 3 series is, how good it is. Tesla is a cult. The people who buy the car think they are saving the planet, think Musk is a near deity, no other manufacturer can match that. Have you see the interior of the Model 3, the dash, its a joke - they are still lined up to buy it. Tesla is doing some good things to be sure, like investing in a charging network, battery technology, etc - but other manufacturers who think there are hordes of people lined up wanting full electrics that aren't Teslas, are mistaken.
I ran some brief numbers on the Tesla leasing website (P100D AWD....why not??) and the residual after 3 years is about 45%. With 5k down (total 8k due at singing), monthly payment is about 2k month X 36 months for a 140k car. Will be interesting to see what secondary market looks like and long term costs.