Tesla overtakes Ford in market value after stocks climb 5.8%

US-based electric car manufacturer Tesla has surpassed Ford in market value, after the former's stocks recorded a growth of 5.8 %, taking its market value to US$ 48.2 billion. This valuation is around US$ 3.1 billion more than that of Ford. The stock hike has made Tesla the second largest American car maker in terms of market value, behind General Motors.

The increase in Tesla's share prices came a day after the company announced that it had shipped 25,000 units in the first quarter of 2017. This sales figure surpassed the expectations of market analysts and reflected Tesla's growing popularity and market share. Interestingly, while Ford sold a lot more cars in comparison to Tesla, it didn’t manage to meet market projections. This resulted in the stock tumbling down and thus helping Tesla's market capital to surpass it for the first time.

It must be noted that in all parameters except market value, Ford surpasses Tesla by a huge margin. While Tesla sold 25,000 cars worldwide in the first quarter this year, Ford clocked nine times this sales figure in the last month in the US market alone. Ford had registered an annual revenue of US$ 151.8 billion last year compared to Tesla's corresponding figure of US$ 7 billion.

However, Tesla is considered to be an evolving company. Shares of the electric car maker behave a lot like technology stocks, which rise as per the company's potential to make a mark in the near future. A major reason behind the recent rise in Tesla's valuation can also be considered to be the upcoming official introduction of the Model 3, which is the company's most affordable product and is expected to increase the manufacturer's global sales significantly.

Source: Bloomberg