Even with a 9% drop in Tesla, Inc.’s (NASDAQ: TSLA) stock due to disappointment in its “robotaxi” announcement, Tesla’s market cap is $696 billion, compared to Ford Motor Company’s (NYSE: F) $43 billion. That means Tesla is worth 16 times more than Ford.
Tesla’s “robotaxi” event showed what investors thought was too little about its plans and their effect on revenue. Its new “Cybercab” seats two people and may be priced at about $30,000. But, it will not be available until 2026, and Tesla CEO Elon Musk says he sometimes misses deadlines. He also showed a “Robovan” which can carry as many as 20 people.
Musk should have shown a huge leap forward in artificial intelligence-managed self-driving, considered the next revolution in transportation. Ferocious competition comes from Google’s Waymo, GM’s Cruise, and products from several Chinese EV makers.
Tesla’s market cap still stems from its status as an AI company, at least in the eyes of some investors. Musk says Tesla has gathered millions of miles of data about America’s roads, much of it video. Musk can reasonably point out that he owns one of the largest AI companies in the world, xAI. Tesla’s “full self-driving” mode remains one of the most advanced in the car industry. Nvidia Corporation’s (NASDAQ: NVDA) CEO Jensen Huang says that Tesla said, “Tesla is far ahead in self-driving cars.”
On the other hand, Ford has found it almost impossible to convince investors it is much more than a legacy car company. According to several sources, it loses nearly $100,000 on each EV it sells. It cannot be said that it is close to the cutting edge of driving technology. It remains a fossil fuel engine manufacturer.
Tesla still holds a considerable lead in market cap value compared to legacy car companies. If Musk can prove that he can build the ultimate AI-driven vehicles, that lead will hold.
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