Ford and GM CFOs reveal biggest secret in the car business right now - Business Insider

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The CFOs of Ford and GM reveal the biggest open secret in the car business right now: There's an auto market and there's a Tesla market.

Tesla cofounder and CEO Elon Musk gestures while introducing the newly unveiled all-electric battery-powered Tesla Cybertruck at Tesla Design Center in Hawthorne, California on November 21, 2019.This story requires our BI Prime membership. To read the full article,Tesla's stock has been on an epic tear; the electric carmaker's market cap has left GM and Ford in the dust.

Lurking in the shadows of the Tesla rally is a hard fact: global electric-vehicle sales are a mere 2% of the total, and it could be staggeringly expensive to improve that figure and justify Tesla's stock price.The contrast is beyond vivid: Tesla has enjoyed a near-vertical stock rally that's made it the second-most-valuable automaker on the globe, thanks to a market capitalization of almost $170 billion.

There's been plenty of head-scratching about Tesla's share-price surge, which has been thoroughly irrational, even if you're some kind of ultra-bull who thinks that the core business — electric cars — is staged for staggering future growth. Other automakers aren't currently looking to flood the market with electric vehicles, even though they're preparing to launch a lot of EV models.

Stone rightly highlighted the company's plans to refresh three quarters of its vehicles in 2020, including a redesign of the F-150 pickup truck, the carmaker's cash cow. He called this a "global redesign tailwind" and stressed that Ford's marquee electric offering, the Mustang Mach-E, had already generated a significant amount of customer enthusiasm.

GM is spending $1 billion a year on Cruise and has somewhat quietly pointed toward combined EV-autonomous undertakings as being the carmaker's future.

 

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Tesla makes a run at biggest market 'bubble' ever“You’re looking at the very start of what’s going to happen with Tesla,” billionaire investor Ron Baron said earlier today. “This could be one of the largest companies in the whole world.” how the fck by stocks? I see more honda's and Toyota's on the road So excited. I really want Musk to be empowered so he can say zany shit on his twitter account more. Tesla
Source: CNBC - 🏆 12. / 72 Read more »