Could Tesla Be Larger Than GM? Elon Musk Thinks So

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  • As of Monday morning, General Motors Company GM's stock implied a market cap of $55.66 billion, roughly $25 billion larger than Tesla Motors Inc TSLA valuation.
  • Tesla's CEO Elon Musk said on Friday that it is "not out of the question" that his company's size will eclipse General Motors and other traditional auto makers.
  • Tesla's 2020 production guidance consists of 500,000 cars per year, but Musk said that over the longer-term, the company could produce "several million" cars per year.
General Motors
reported last week
that it sold 262,993 vehicles in the US alone during the month of October. By comparison, Tesla Motors
reported
that it delivered a total of 11,603 vehicles during its entire third quarter. Tesla's CEO Elon Musk has already made his 2020 production guidance clear. The executive expects the company to build 500,000 cars per year. However, this implies that Tesla's full year production is roughly the equivalent of just two months of General Motors' current US sales. Musk, the eccentric billionaire entrepreneur, is also known for his long-term vision. He said last week that it is "not out of the question" that Tesla will one day surpass General Motors, and other traditional auto makers in size. "We could conceivably go beyond half a million cars," Musk said, according to
Tech Insider. "Long-term, I think we want to try to do several million cars." Tesla recently began delivering its Model X SUV vehicle and its first ever "mass market" car, the Model 3, is expected to launch in 2017. While a production ramp and expanded production facilities could help the company achieve its 2020 targets, Musk hinted that this is just the beginning of an even longer-term plan. Tesla's market cap as of Monday morning stood at less than $30 billion. By comparison, General Motors' market cap was just above $55 billion. "I think that overtime, if we build great products, and we keep car structure competitive, then I think, who knows?" Musk also said.
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Posted In: NewsElon MuskTeslaTesla 2020Tesla Production Guidance
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