Tesla is off the hook.

Right now, the electric card company is trading at almost six times revenue. (x5.8) meanwhile car giant GM trades at less than four times revenue.

In April, Tesla eclipsed Ford in market value. Tesla has a market cap of $48 billion, whereas Ford is at $44 billion.

Tesla made 80,000 cars in 2016. Ford made 6.7 million.

What is Tesla’s secret? It’s not the electric engine – everyone is building those.

It is proximity to customer. Tesla have their own stores in high end shopping Malls and on YouTube they are the most trafficked auto site by some margin. (Posts regularly get more than two million views.)

At the same time, they don’t spend on traditional advertising. Tesla spend $6 per customer while Toyota spend $248.)

Today it was announced Ford are ditching their CEO after shares in the auto company dropped 40% in three years.

 

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