Ford surpasses Tesla in market cap, as old and new automaker stocks diverge post earnings

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Ford surpasses Tesla in market cap on earnings rally, EV demand slump

Ford's market capitalization eclipsed Tesla's by roughly $1 billion on Friday afternoon, pushing the 116-year-old automaker to a higher stock market value than Elon Musk's electric car maker for the first time since April 2017.

In April 2017, Tesla had risen above both Ford and GM to become the largest U.S. automaker by market cap. But concerns about slumped EV demand and Tesla's dwindling cash on the balance sheet — which declined by $1.5 billion in the first quarter as it paid off debt and invested in the Model 3 — have continued to weigh on shares.

Ford announced Wednesday it had invested $500 million in electric-truck maker Rivian to build a battery-powered electric vehicle, which Shanks said is a"win win" for both companies.

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