Is Tesla really worth more than Ford?

daryanenergyblog

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Recently Tesla’s share prices rose to a level which valued the company higher than the value of Ford. This at first glance seems surprising. After all Ford rakes in $115 billion a year in revenue and builds over 6 million vehicles a year. Tesla makes a 1/20th that amount and has only ever made 186,000 cars in its entire life, about the number of cars Ford makes every 2 weeks. So what’s going on here.

Well firstly technology. Ford made a very foolish decision in the 2000’s. In keeping with the rest of the US auto industry, it decided to ignore the issue climate change and pushed SUV’s extensively. Consequently it was rival firms, such as Nissan, Volkswagen and Toyota, who invested heavily in alternative power trains and smaller more fuel efficient cars. As too did new entrants to the market like Tesla. The 2008 spike in oil prices…

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