Analysts at Piper Jaffray recently placed Tesla’s net worth to be $51.4 billion, just edging out General Motors who is valued at $50.4 billion.
According to the letter published on MarketWatch, analysts drove a Tesla for seven months to determine if they will increase their stock prices. “Piper Jaffray upgraded the stock to the equivalent of buy from neutral and raised its price target by 65% to $368 from $223,” the letter said.
Tesla has yet to make a profit due to its constant innovation and product development, but experts believe their technology will provide the company with a profit in the near future.
Ford had been the highest valued company for the past thirteen years, but Tesla passed it a week ago with their recent assessment. Even with their 0.2% control of the US automobile market, they are a major influence on the future of vehicles. GM controls 17.3% of the market according to The Guardian.
Tesla is planning on delivering the Model 3 this year instead of the originally planned mid-2018. The Model 3 is Tesla’s most affordable car to date. It starts at $35,000 compared to the starting price of $66,000 for the Model S.
The Autopilot and Summon software for self-driving cars has been a major factor to Tesla’s success. Companies, such as Mercedes, are fighting to develop self-driving technology as well, but neither company wants to make a mistake by rushing the release of it.
In 2016, Tesla produced a total of 76,230 cars, and 40,000 were in the United States. Elon Musk expressed his desire to up that production to 500,000 by 2018. GM produced over 500,000 cars in their first quarter this past year. Even with their current minimal car sales, Tesla is going to be a major player in the automobile industry for years to come.