According to the opening valuation of the Tesla scrip on Nasdaq, the American electric car maker is now the most valued automotive manufacturer in US. Elon Musk, the mercurial entrepreneur who started building electric cars when the oil lobby was at its strongest, has managed to gain more market cap than General Motors.
Knowing the volatile nature of financial markets, the joy might be short-lived for Tesla but the event marks an important milestone in the history of automobiles. In 13 years of its existence, Tesla has built only a few cars, most of which are quite expensive to begin with. Also, with electric infrastructure still in its nascent stages, the sales volumes aren’t anywhere close to what the GMs, Fords and Toyotas sell. But, Tesla has managed to define a start.
It is widely accepted that cars will be going the electric way and Tesla’s success in convincing their shareholders to back the venture is significant. It has led to a rise in their share values, helping Tesla raise more funds to invest in further research. The upcoming Model 3, being a budget car is expected to bring in volumes. Mainstream carmakers are also expanding their electric and hybrid portfolios and efforts are being made to develop the required infrastructure as well.
