Eight months after it seemed headed for the corporate junkyard, Tesla is now worth more than General Motors, Ford and Fiat Chrysler combined, even though the Big Three together sell more cars and trucks in two weeks than Tesla does in a whole year.
In a reversal of fortune analysts find amazing if not nutty, the stock of the electric vehicle and solar panel maker has rocketed to nearly US$900, up over 30% in just the past two days. It is now worth five times what it was in June, when there were whispers of bankruptcy surrounding the company founded by the erratic visionary Elon Musk.
Others see the meteoric rise as just plain crazy for a company that's never turned a full-year profit.Tesla sold only 367,500 vehicles last year, compared with millions at GM, Ford or Fiat Chrysler. GM alone sold 7.7 million, 21 times more than Tesla. Big debt payments were looming, the company was burning cash and losses were growing. Its federal tax credit was being phased out by the end of the year, and competitors were about to launch their own electric vehicles.
"For Tesla worldwide, this will probably be their most important car," said Jessica Caldwell, executive director of insights at the Edmunds.com auto pricing site, which provides content for The Associated Press.
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