• News
  • Guides
  • Reviews
  • Media
  • About
  • News
  • Guides
  • Reviews
  • Media
  • About
Sign up Now (For Free)

Sign up for our newsletter and receive the latest automotive news in your inbox!

Invalid email address
We promise not to spam you. You can unsubscribe at any time.
Thanks for subscribing!
News
Read Now
  • All News
  • Automakers
  • Automobiles
  • Auto Shows
  • Business
  • EVs & Environment
  • Guides
  • Lawsuits/Legal
  • Regulatory
  • Ride-Sharing
  • Safety & Recalls
  • Technology
Recent
  • The Rearview Mirror: All That the Name Implies
  • Top Tips for Improving EV Range in Cold Weather
  • Mercedes is First Automaker to Offer True Level 3 Hands-Free Driving System in the U.S.
  • Audi Introduces Fourth “Sphere” Concept: Activesphere
  • Jaguar Land Rover Posts First Profitable Quarter in Two Years
  • Musk Confirms Cybertruck Production Tracking for End of 2023
  • Polestar Raises its Game with the 2024 Polestar 2
  • Toyota CEO Akio Toyoda Steps Down, Hands Reins to Lexus Chief Koji Sato
  • Environmental Groups Chide GM for ICE Investments
  • Tesla Sets New Financial Benchmarks, But Misses Analysts Targets
Editor’s Choice
    Reviews
    Read Now
    • All Reviews
      • Feeder
    • Classic Cars
    • Concept Cars
    • Convertibles
    • Coupes
    • Crossovers/CUVs
    • Diesel
    • Hot hatches
    • Hybrids
    • Luxury Vehicles
    • Minivans
    • Muscle Cars
    • Pickups
    • Sedans
    • Sports Cars
    • Super Cars
    • SUVs
    Recent Reviews
    • A Week With: 2023 Ford F-150 Raptor R 4x4 Super Crew
    • A Week With: 2023 Genesis Electrified G80 AWD
    • A Week With: 2023 Land Rover Defender 110 V-8
    • First Drive: 2023 Honda Pilot TrailSport
    • A Week With: 2023 Jaguar F-Type R Coupe
    • A Week With: 2023 GMC Yukon Denali Ultimate
    • A Week With: 2023 Genesis GV60 Performance
    • A Week With: 2023 Chevrolet Suburban Z71
    • A Week With: 2023 Lexus UX 250h F Sport
    • A Week With: 2023 Mercedes-Benz EQB 300 4Matic
    Editor’s Choice
      Guides
      Car Warranty
      • Endurance Warranty Reviews
      • BMW Extended Warranty
      • Extended Warranty For Cars Over 100k Miles
      • Extended Car Warranty Cost
      • Subaru Extended Warranty
      • CarShield Reviews
      • CarShield Cost
      • Aftermarket Car Warranty
      • CARCHEX Warranty Reviews
      • Reputable Extended Car Warranty Companies
      • Used Car Warranty Companies
      • Best Car Warranty
      • Is CarShield A Scam?
      • Mercedes Extended Warranty
      • CarShield Plans
      Insurance
      • How To Identify A Car Insurance Company
      • Geico Mechanical Breakdown Insurance
      • How Far Back Does A Car Insurance Company Look
      • Mechanical Breakdown Insurance For Used Cars
      • State Farm Mechanical Breakdown Insurance
      • Mechanical Breakdown Insurance From Progressive
      • Dollar A Day Insurance
      • Auto Insurance For SSI Recipients
      • Car Insurance Rates After A Suspended License
      • Auto Insurance For Salvage Vehicles
      • Average Cost of Dodge Ram 1500 Car Insurance
      • Car Insurance Florida
      • Full Coverage Auto Insurance
      • GrubHub Insurance
      • Amazon Delivery Auto Insurance
      Shipping
      • Car Shipping Companies
      • uShip Reviews
      • Auto Shipping From California To Hawaii
      • Montway Auto Transport Reviews
      • Cheap Car Shipping
      • Easy Auto Ship Reviews
      • Auto Shipping Miami
      • Auto Shipping To Alaska
      • Car Shipping Cost
      • Auto Shipping Hawaii
      • Auto Shipping Puerto Rico
      • Sherpa Auto Transport Reviews
      • Auto Shipping Atlanta
      • Auto Shipping Boston
      • Auto Shipping. Chicago
      About
      • About Us
      • Contact Us
      • Terms of Use
      • Privacy Policy
      • Affiliate Disclosure
      • Sitemap
      TheDetroitBureau.com

      More than just “another” place to find news, reviews, spy shots, commentary, features, and guides about the auto industry. TheDetroitBureau doesn’t stop with the press releases or confuse a few lines of opinion with insightful, in-depth reporting.

      Contact Us

      Like what you see? Have some ideas for making The Detroit Bureau.com even better? Let us know, we’d love to hear your voice.

        Media
        Listen Now
        • Headlight News: All Episodes
        More from TheDetroitBureau
        • Guides
        • Latest News
        • Auto Reviews
        • Podcasts
        Headlight News

        TheDetroitBureau.com’s Headlight News offers a look at the past week’s top automotive news stories, as well as what’s coming up in the week ahead. Check out the week’s top story and our latest review…along with a dive into the past with this week in automotive history.

        home > news > Automobiles > Tesla Market Capitalization Hits $15 Bil, Passes Fiat and Peugeot – Combined

        Tesla Market Capitalization Hits $15 Bil, Passes Fiat and Peugeot – Combined

        Battery carmaker soars to new record as Wall St. rethinks auto stocks.

        Paul A. Eisenstein
        Paul A. Eisenstein , Publisher & Editor-in-Chief
        July 15, 2013
        Tesla demonstates its new battery-swap capability.

        There are plenty of folks who still don’t see much of a future for electric vehicles. Clearly, they aren’t the ones investing in Tesla Motors.

        The Silicon Valley battery-car maker reached a critical milestone Monday morning when its shares surged just enough to push its total market capitalization up to an even $15 billion dollars.  And though Wall Street pushed back as the morning dragged on, Tesla stock still was running more than five times its 52-week low.

        A Good Investment!

        That means the maker, which only just posted its first-ever quarterly profit during the January to March period, now has a market cap equal to Italian automaker Fiat and France’s PSA Peugeot Citroen – combined.

        That’s all the more significant considering that Tesla sold a grand total of about 4,750 vehicles during the first quarter. And while that was a good 5% above the battery-carmaker’s original forecast, that’s little more than the number of Ford F-Series pickups sold in two days and significantly fewer Toyota Camrys sold in a week.

        In fact, the maker’s “current share price assumes the company can achieve unit sales equal to multiple times our current volume estimates and attain a 12.5% margin on earnings before interest and taxes,” wrote John Lovallo, an analyst for BofA Merrill Lynch Global Research.

        The maker has been nudging into double-digit territory, however, with the Model S battery sedan it launched exactly one year ago this month. And Tesla CEO Elon Musk has promised to deliver even better numbers when the maker dials up sales in Europe, China and other overseas markets in the coming months.

        Meanwhile, Tesla is looking to add a second electric vehicle line in 2014, the Model X crossover. And Musk recently told TheDetroitBureau.com that the company is moving forward with plans to bring out a smaller, lower-priced vehicle around mid-decade. It could come in at around half the current price of the Model S, which is generally running between $60,000 and $100,000 apiece, depending on battery range and other options.

        Tesla’s latest burst of activity comes as the maker marks another milestone, today taking a place on the influential NASDAQ 100 stock index. That alone ensures the maker’s shares will have a ready mutual fund market. Since the recent announcement that Tesla would take Oracle’s place on the NASDAQ100 its stock has shot up as high as $133.26 a share, though it was settling back into the $130 range in late morning Monday trading.

        (For more on Tesla’s move to the NASDAQ 100, Click Here.)

        Tesla shares began the year at $35.36 a share, and the company had a 52-week low of $25.52.

        “Once the stock joins the index, you will have some buying,” wrote Sandy Mehta, chief executive officer of Value Investment Principals Ltd. in Hong Kong.

        The question is whether Tesla can continue delighting investors.  CEO Musk has already sent signals that the second-quarter results will not be as solid as the prior three-month report.  And by some analysts’ forecasts, Tesla would have to be on track to selling more than 300,000 battery-cars annually by decade’s end. That would require it to boost demand more than 16-fold compared to the current rate.

        The media-savvy Musk has expressed nothing but confidence. And he has announced a series of steps since the beginning of the year to help overcome the most obvious concerns about electric vehicles. That includes a “bullet-proof” battery warranty, a nationwide network of so-called Supercharger stations that would allow Model S owners to travel long distances with minimal disruptions, and an even quicker battery-swap system.

        (Tesla demonstrates new battery-swap capabilities. Click Here for more.)

        But whether Tesla can maintain even its current pace remains to be seen.  Joe Phillippi, of AutoTrends Consulting, is one of many observers who caution that the maker might simply be drawing from a limited cohort of affluent, green-minded motorists and that once this group’s collective demand is filled sales could take a tumble.

        Don’t tell that to Musk or his board, however.  While Tesla’s market capitalization might have surged from $12.7 billion to around $15 billion in less than a week, the longer-term goal appears to be almost triple the current figure.

        Last August, the board approved options that would allow Musk to purchase 5.3 million shares of Tesla stock at just $31.17 a share.  But he won’t be allowed to exercise all the options unless and until the carmaker has achieved 10 “operational milestones,” and that includes a market cap of $43.2 billion.

        And why not, suggested a proxy statement released on April 11 of this year.  After all, it noted, Ford Motor Co was worth $53 billion that day, and General Motors had a valuation of $40 billion.  In fact, both of those makers have gained substantially these last three months, which seems to be giving Tesla even more confidence.

        The Tesla board placed a 10-year time limit on Musk’s options, so he has a bit of time left to catch up to the industry giants – but he’s already well ahead of smaller makers like Fiat, currently valued at around $7.1 billion or Peugeot, at $2.7 billion.

        How to Care for Your Car

        Cheap Car Warranty

        Editor's Choice

        Best Extended Car Warranty

        Editor's Choice
        Recently Published

        The Rearview Mirror: All That the Name Implies

        Yesterday
        GMC Hummer SUT winter testing

        Top Tips for Improving EV Range in Cold Weather

        Jan. 27, 2023
        Mercedes Drive Pilot Nevada driving

        Mercedes is First Automaker to Offer True Level 3 Hands-Free Driving System in the U.S.

        Jan. 27, 2023

        3 responses to “Tesla Market Capitalization Hits $15 Bil, Passes Fiat and Peugeot – Combined”

        1. Marty W says:
          July 15, 2013 at 7:18 pm

          Good for them (Tesla). I’m not ready to spend this much money on a vehicle especially the way people drive these days, and hearing the stories of those who would do anything to see them gone, but…

          Bless them as they provide a seriously high quality vehicle. So many “spam can” types out there, us “motorheads” love to see these machines.

          Reply
        2. Jorge M. says:
          July 16, 2013 at 9:31 am

          I’d like to see the accounting at Tesla… From zero to $15 Billion in a couple years… Is this a ponzi scheme?

          Reply
        3. Pingback: Why Robert Downey Jr. tapped into Tesla’s Elon Musk for “Iron Man” character | Green Auto Market

        Leave a Reply Cancel reply

        Your email address will not be published. Required fields are marked *

        Share this article:
        © The Detroit Bureau 2023
        • Guides
        • Privacy Policy
        • Terms of Use
        • Affiliate Disclosure
        • Contact Us
        • Sitemap
        Follow Us: