Tesla briefly tops GM’s market value

Image: Tesla Model 3
Tesla Model 3 candidates are being road-tested in preparation for production. (Credit: Tesla Motors)

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.”

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By Alan Boyle

Mastermind of Cosmic Log, contributor to GeekWire and Universe Today, author of "The Case for Pluto: How a Little Planet Made a Big Difference," past president of the Council for the Advancement of Science Writing.

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