Despite Ongoing Quality Concerns Tesla Is Now More Valuable Than Ford
Industry News
What does it say about the quality of a Ford vehicle when a relative new comer into the car industry has more market value than a car company that is over one hundred years old? It says the financial markets swing up and down at the sign of good or bad news. Stock markets thrive on nothing other than confidence and this confidence is measured in an upward trend of sales. So money really does make the stock market world go round and traders confidence was boosted when Tesla announced that it posted strong quarterly deliveries. This news sent Tesla’s stock market value soaring on Sunday to $298.52 per share. Tesla said it increased vehicle deliveries 69 percent from this period last year. Tesla delivered just over 25,000 cars flying past stock market analysts predictions of 23,000 vehicles. This is despite delays with the launch of its Model 3 which is rescheduled for later this year. Tesla’s stock market value hustled to $48.4 billion dollars driving past Ford’s stock market value of $45 billion and General Motors value of $5 billion. Stock market traders were predicting Tesla’s share value would fall dramatically and made large bets against Tesla in the anticipation of poor Q1 results. The tactic of betting against a company that is to say a company the stock market predicts will fail is known as short selling, if the bet pays off then short sellers can earn at a minimum many, many millions. That didn’t happen and industry analysts have calculated that these short sellers lost $2.5bn dollars. Tesla’s aim is long term and its desire is ironically to become the ‘Ford’ of carbon free transportation. But always remember one thing, stock market values go up and they go down, so for now Musk has the right to gloat… but… for how long.  Elon-Musk-Tesla-Rules-Over-Ford
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