Tesla is now the most valuable car company in America. The electric car manufacturer’s market capitalization surpassed that of General Motors today, just a week after topping Ford. The 14-year-old company took over the top spot after its shares jumped up 3.1 percent for a capitalization of $51.53 billion—$1 billion more than GM.
Tesla is benefiting from exceeding analysts’ expectations, having reported shipments of 25,000 cars and SUVs in the first quarter of this year. That is nowhere near the amount of cars GM ships out—nearly 10 million last year. It also isn’t Tesla’s profits that are giving it such a high valuation: Ford and GM are expected to make billions this year, while Tesla expects an $950 million loss, according to Bloomberg.
But despite those numbers and uncertainties going forward, investors are sold on Elon Musk’s vision of an affordable electric vehicle, even if General Motors beat it to the punch with the Bolt.
“Is it fair? No, it isn’t fair,” Maryann Keller, an auto-industry consultant in Stamford, Connecticut, told Bloomberg. “Even if Tesla turns a profit, they will eventually have to make enough to justify this valuation.”
Honda is the next automaker in Tesla’s crosshairs with a current valuation of around $52 million. Ahead of it are Germany’s BMW, Volkswagen, and Daimler with Japanese giant Toyota at the top.
Tesla’s “budget-friendly” Model 3 is expected to ship before the end of 2017 and has already amassed more than 370,000 reservations.