Silicon Valley's Tesla Become Most Valuable Car Marker in the US says Toronto Sumitomo Trading International

TORONTO, Canada, April 20, 2017 /CNW/ -- Silicon Valley's Tesla overtook GM as the most valuable carmaker in the United States on Monday said Toronto Sumitomo Trading International.

Modern technology is working its way into our lives and infiltrating every aspect of our daily routines, automobile industry is no exception, the increased reliance on software and renewable energy paved the way for Tesla to climb to the top of the industry and claim the title, the biggest carmaker in the United States by market capitalization.

Tesla's stock price hit 312.39 dollars Toronto Sumitomo Trading International analysts upgraded its stock from neutral to overweight and upgraded the price target. Tesla's stock price jumped to all time highs increasing 3.26% from last week's close.

"The company now is valued at 50.887 billion dollars beating GM by one million dollars, something will lead to an interesting discussion when the two Chief Executive Officers meet at the white house with president Trump to discuss the tax reforms and infra structure" said Daniel Holland, Director of Corporate Equities at Toronto Sumitomo Trading International.

Toronto Sumitomo Trading International Research showed that considering the number of cars Tesla sold last year, its market capitalization now will be equivalent to 667,000 dollars for each car sold, or looking forward it will 102,000 dollars for every car Musk plans to sell in 2018. On the other hand, GM's market capitalization is equivalent to 5,000 dollars for each car sold in 2016. This offers a great insight into consumer trust in technology.

Tesla's stock price has increased by 35% over the last month aided by investors' trust in Elon Musk's plans to revolutionize both the energy and the automobile industries. Meanwhile, General Motors' stock price has been declining in the past few years.

Tesla's advocates believe the lose making company's price is justifiable based on long-term outlook, arguing its acquisition of SolarCity and building the new battery cell plant will drive production costs lower.      

"Tesla's valuation as a car company is unrealistic, but if we look at it as a battery company which can expand and innovate, the valuation might work" said Michael Hudson, Head of Mergers and Acquisitions at Toronto Sumitomo Trading International.

Many skeptics believe that Tesla is overvalued and its highly inflated stock price has made it a target for short sellers who bagged a valuation loss of 2 billion dollars so far in their portfolios.      

About Toronto Sumitomo Trading International

Toronto Sumitomo Trading International is an Asia-based financial services company with our corporate department in Tokyo, Japan and our retail operation in Toronto, Canada. By connecting markets from East to West, we service the needs of individuals, institutions, and corporates through our two business divisions: Retail, and Corporate (Global Markets and Investment Banking).

Media Contact: Switchboard: +1 647 945 9743, Email: info@tstinternational.com Website: https://www.tstinternational.com

SOURCE Toronto Sumitomo Trading International

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