Electric vehicle (EV) maker Tesla Inc. (founded in 2003) now has a market capitalization more than twice that of The Ford Motor Company (founded in 1903), the iconic firm that began the mass production of gasoline powered cars that now rule the world's roads.
As of January 3, Tesla had a market cap of $79.9 billion compared to Ford's $36.6 billion. Tesla's share price improved 2.96% to $443.01 while Ford's sank 2.23% to $9.21.
The disparity in valuation between Tesla, the only successful new American car company founded in the last half-century, and Ford starkly illustrates the forthcoming demise of cars powered by gasoline and diesel engines and the inevitable rise of EVs to world dominance.
Tesla's market cap first exceeded Ford's in April 2017, and it was mostly all Tesla after this. Tesla and Ford began 2018 almost closely matched; Ford was valued at $52 billion and Tesla at $54 billion. Tesla has mostly been worth more than Ford since but left the legendary carmaker behind in 2019.
The reason for Tesla's dominance of the EV market is simple: it produces more EVs than any other maker by far. The Tesla Model 3 sedan is the most popular EV in the world. Tesla sold three times more Model 3s than the second most popular model, China's BAIC EU-Series, in the first 11 months of 2019.
On January 3, Tesla said it delivered 367,500 electric vehicles in 2019 -- 50% more than 2018 -- and a record-breaker made possible by sustained sales of the cheap Model 3. It said more than a third of these deliveries (112,000 EVs) were made in the fourth quarter alone. Tesla also reported production improving 10% from the third quarter to 105,000 EVs.
The fourth quarter of 2019 was a brilliant end to a year that started poorly for Tesla. The company delivered only 63,000 vehicles in the first quarter, a plunge of nearly one-third from 4Q 2018. Tesla rebounded, delivering 95,200 vehicles in Q2 and 97,000 EVs in Q3.
EV newcomer Ford is playing catch-up to Tesla and other EV makers with years of experience behind them. In April, Ford invested $500 million in electric truck maker Rivian for its battery technology. Last November, the company announced its first all-electric car, the Mustang Mach-E. The all-electric Mustang Mach-E five-door, crossover SUV is set for production in 2020 and marketing in 2021. It opened for order taking on November 17 ahead of the 2019 LA Auto Show. The Mach-E's estimated starting price: $40,000 to $50,000.
The First Edition Mach-E model will come with an extended range battery pack and all-wheel drive as standard. Buyers going for the least expensive Mach-E will have to wait until 2021 with the arrival of the base Mach-E Select.
