NewsTesla, Ford, cars, automaker, Automotive industry, market news
Feb 28, 2017 10:46 AM EST
Electric automaker, Tesla, has increased its value to 30 percent after it reported its full-year earnings on Wednesday which was worth $44.6 billion ahead of trading, a mere 12 percent behind Ford at its current valuation which was $49.9 billion.
About a year ago, Ford was worth twice as much as Tesla.
Ford, considered one of the world's iconic automakers founded by Henry Ford, evaded bankruptcy in 2009, which most of the automakers failed to avoid in that same year such as General Motors and Chrysler.
Tesla, on the other hand, is led by Elon Musk and is now the top electric carmaker although still comparatively smaller than major automakers. It sold 76,000 cars last year as opposed to Ford's 6.7 million cars. Tesla is expected to account $7 billion full-year revenue than Ford's $152 billion annual revenue. Meanwhile, in regards to profit, Ford reported $4.6 billion annual gains while Tesla has never reported a full-year profit.
The numbers prove that Ford's reach is relatively far from Tesla but the latter is keeping up with the 114-year-old automaker. More so when investors are betting on the Tesla's future projects such as the sale of the Model 3. The first mass market car is due to be sold late this year and Tesla has already taken preorders amounting to 300,000. The list price of the Model 3 is about $35,000.
Ford is also planning on developing a mass market car on their own. The company announced plans to invest $4.5 billion in building electrified vehicles by 2020 as it tries to catch up with its rivals. General Motors has the Chevrolet Bolt as its mass market car. Ford CEO Mark Fields notes about the future of automatic cars and predicts that hybrid and electric vehicles will sell faster than gasoline-powered cars in the next 15 years.