Tesla’s stock (TSLA) is surging since announcing record profits and the company is now worth more than BMW as the stock of the latter is slipping following disappointing financial results.
The California-based electric automaker’s market cap is now worth over $59 billion while BMW’s slipped below 49 billion euros ($55 billion) yesterday after it announced lower than anticipated profit for the last quarter.
While it’s hard to directly compare Tesla to other automakers because the company is more than an automaker due to its growing energy division, most of its revenue currently comes from its automotive business.
Tesla showroom in Milton Keynes (Image: T. Larkum)
As a premium automaker, BMW is probably one of the best comparisons for Tesla.
But even though Tesla’s production increased significantly this year, the two automakers deal in completely different kinds of volume.
The BMW Group delivers over 2 million vehicles per year between all its brands while Tesla is currently producing vehicles at a rate of about 360,000 unit per year.
Nonetheless, investors are betting on the company’s future and they are encouraged by its growth and profitability over the last quarter.
The Model 3 is already disrupting the midsize premium sedan market, which has been an important market for BMW.
BMW’s sales of midsize sedans have been down in the US, where Tesla is mainly delivering the Model 3, this year.
The German automaker’s BMW 3 Series is seen as one of the biggest losers in the rise of the Model 3.
Read more: Electrek