Tesla overtakes giant Ford in market cap
TESLA this week became the second-largest US car maker in terms of market capitalisation, displacing Ford.
Many major auto makers reported US sales declines in March compared to a year ago, but Tesla over the weekend said it saw a huge jump in vehicles delivered to consumers in the first three months of the year.
That was enough to send the electric car maker’s stock soaring on Monday, even as investors punished major car brands for reporting lower-thanexpected March sales.
Tesla said it delivered 25,000 of its high-tech vehicles in the January-March period – a 69 per cent surge compared to the first three months of 2016 – indicating it was on its way to meeting its goal of 50,000 vehicle deliveries by mid-2017.
But the news was not good for many other big players.
Ford reported that sales fell a worse-than- expected 7.2 per cent, while Toyota sales dropped 2.1 per cent, compared to the same period last year.
FCA US, the American arm of Fiat Chrysler, continued to struggle, reporting a five per cent decline last month, while in the first three months of the year, sales were down eight per cent.
Record Honda truck and SUV sales could not help the Japanese car maker notch an overall increase last month, as sales slipped 0.7 per cent, when accounting for declines at its Acura luxury brand.
“More people are working, consumer confidence is at a 16year high, fuel prices are low,” Kurt McNeil, head of GM’s US sales, said in a statement.
“We see more growth ahead for our brands,” McNeil said. — AFP