Who's Laughing Now? Tesla Motors Now Worth Half of GM's Value (On Paper)

tesla motors gm logos photo

Photos: Michael Graham Richard

"It's sort of amusing," remarked Tesla co-founder Martin Eberhard.
Last week I wrote about Daimler buying an almost 10% stake in elcetric car maker Tesla Motors. Andrew S. Ross, writing for the San Francisco Gate, made an interesting observation. Based on the ±9% stake that Daimler purchased for $50 million, Tesla's valuation is about $550 million. That's about half of GM's market valuation ($1.17 billion) with their share at $1.92 (the closing price when Ross wrote his piece). But today's price for a GM share is hovering around $1.25, so - at least on paper - Tesla would now be worth more than half of GM.

tesla motors elon musk electric roadster photo

Photo: Michael Graham Richard

Andrew S. Ross wrote:

From the what-a-world department: Daimler AG's $50 million investment in Tesla Motors this week means the San Carlos electric car maker is worth roughly half the value of the world's largest auto manufacturer, General Motors Corp. With one roadster on the market and one sedan in prototype, Tesla, thanks to Daimler's 9 percent stake, is valued at $550 million. GM sold 8.35 million vehicles worldwide in 2008; its market value as of Thursday was $1.17 billion, based on the closing stock price of $1.92.

Now of course, this is on paper. GM has way more assets than Tesla, and the number of cars sold isn't even comparable. But still, this is probably still a sign that right now expertise in electric vehicles is highly valuable while GM's expertise in big SUVs isn't worth too much. The real question is: Is this an over-valuation of Tesla, or an under-valuation?

But it takes more than paper to change things. If the transportation sector is to become cleaner, major changes will need to happen, not just a gain of a few MPG.

Via SF Gate

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