For a time on April 10, Tesla edged out GM in market capitalization to become the most valuable U.S. automaker, even though Tesla is on track to lose almost a billion dollars this year while GM is expected to make a $9 billion profit.
The share prices for both car companies dipped today, putting GM ever so slightly back in the lead with a market cap of just less than $51 billion. What’s more, U.S. automakers still fall short of foreign companies such as Toyota and VW. Nevertheless, the rapid rise in Tesla’s share price left some observers predicting a sea change in the auto industry – while others were left just shaking their heads.
“Clearly General Motors is undervalued and Tesla is overvalued,” AutoNation CEO Mike Jackson was quoted as saying at a forum setting the stage for this week’s New York Auto Show. He said Tesla was “either one of the great Ponzi schemes of all time or it’s gonna work out.”