It's a tiny company packing a big punch with investors.
Electric car maker Tesla now has a higher market value than Ford. It's just behind General Motors at the top of the list.
Detroit News business columnist Daniel Howes joined Stateside to talk about the future of Tesla and how the company could compete with Detroit Three automakers.
What Howes finds most impressive is how Tesla comparatively isn't selling that many cars and yet continues to thrive.
“It’s just remarkable,” Howes said. “But it really shows that profitability today is no guarantee of growth tomorrow. And I think the street is really betting on Tesla being kind of the answer for the future. And not only cars, but in other sectors."
According to Howes, Tesla sold fewer than 80,000 cars in 2016, compared to Ford's 2.5 million. Yet, Tesla's stock continues to rise. It's as if Tesla is operating with a different set of rules than the rest of the automakers.
Listen to the full interview above to hear why the Detroit Three could be paying the price of their "past sins." And, will Tesla continue to compete with the more established automakers once it starts mass producing electric cars?
Daniel Howes is a columnist with The Detroit News. Views expressed in his essays are his own and do not necessarily reflect those of Michigan Radio, its management or the station licensee, the University of Michigan.
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