The electric vehicle manufacturer Tesla that is helmed by Elon Musk, set a new record in the first quarter by delivering more vehicles than Ford, whose sales dropped more than 7 percent in March
Tesla delivered 25,000 cars in the first quarter with a market cap of $47 billion!
This also points out that the 113-year-old Ford with a market cap of $45 billion is outruled by the 14-year-old company. While Tesla beat analyst estimates, Ford’s March sales decreased, sending its stock down on Monday.
What’s more, it is expected Ford’s sales to drop just a little over 5 percent in future. Ford sold a little under 237,000 vehicles this past month, while Tesla saw record sales of its Escape vehicles. That’s a significant drop taken that Ford posted its best month of sales in 10 years with about 255,000 cars sold.
Even after these numbers, the company is still losing money and it’s clearly smaller. The manufacturer had $7 billion in annual revenue in last year while Ford saw close to $152 billion. It’s still a fact that Tesla posted a loss of $773 million in 2016.
The record-setting deliveries are a good sign for the electric cars manufacturer even though it is much smaller in quantity, for it prepares to begin production of Model 3, its first mass-market vehicle.
Let’s put it this way, Tesla may be beginning to achieve its steady pace as it continues to take on the challenge of being better than Ford and other large-scale manufacturers so far. Tesla is panning on delivering 50,000 vehicles in the first half of this year and 500,000 more by the end of 2018. Should this company succeed, it will build at least three more Gigafactories in late 2017.
For a company that has previously missed many of its deadlines, casting doubt on its ability to deliver the more than 300,000 Model 3s these are ambitious goals, but it’s Tesla we’re talking about!
There is high demand for relatively affordable electric vehicles with semi-autonomous features if the Model 3 reservations were any indication, but Unlike Musk, Ford CEO Mark Fields is partial to working on highly or fully autonomous vehicles and expects to have those and to be used in a ride-sharing network by 2021.
Musk, on the other hand, ridiculed companies that didn’t put out semi-autonomous technology. He said that he thought it would be morally wrong to suppress functionalities that improve safety for fear of being involved in lawsuits or only to avoid criticisms.
This is an ongoing debate in the industry: Is it better and thus safer to roll out semi-autonomous technology, or to wait until the technology is fully self-driving but possibly delay seeing the safety advantages the assisted driving systems have to offer?