Trendy and eco-friendly Tesla have just overtaken reliable, old Ford in its market capitalization. Trading up today with an unstoppable market value of $47.46 billion, the car company made popular by its awesome electric cars shows no sign of stopping. On the other hand, Ford, which is exactly 100 years older than Tesla, is trading down and dipping its market capital to $44.89 billion.
To give a clear picture as to exactly what caused the 13-year-old electric auto brand to rise so high in profits, leaving century old automakers behind the competition, we need to look at production and delivery rates. The electric car maker enjoyed a sharp rise during the first quarter of the year at a pace that beat analysts’ expectations. Meanwhile, Ford suffered a cast recall of its F-150 pickup trucks, dropping its U.S. monthly sales to 7 percent last month.
However, according to TechCrunch, behind its impressive market achievement, Tesla is actually riding in serious debt. Mainly due to its over-the-roof demands for its latest vehicle, the company had to struggle with this issue and only shipped some 76,000 vehicles last year. Ford, on the other hand, reliably deliver millions of cars each year and have a more healthy balance sheet that far eclipse that of the Elon Musk's startup.
Regardless, the young electric car brand's stock has been steadily gaining value since 2016. It’s currently trading at an all-time high of $291.54. So how does Elon Musk, CEO of Tesla and all around entrepreneur genius, achieve this extraordinary feat in the perilous world of auto business? The answer comes from Musk's exceptional innovative leadership and managerial skills.
According to Forbes, the way Musk is running Tesla is an excellent example of innovation and perseverance, which also entice investors. Musk likes to challenge old assumptions and constantly look for a new, better way of doing things. He reaches new levels of performance for himself and his teams and organizations which manifests in delivering the best possible electric vehicles.
