05:22 GMT05 December 2020
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    Entrepreneur and innovator Elon Musk has had a string of successes recently - just one week after the groundbreaking launch of a recycled SpaceX rocket, the billionaire's luxury Tesla car line of electric vehicles has overtaken General Motors as the most valuable US automaker.

    Elon Musk has taken great pleasure in announcing that his line of luxury electric cars has overtaken General Motors and has become the US carmaker with the largest market capitalization. 

    The automobile industry is increasing it's reliance on software and cutting-edge technology, and this latest milestone has placed Musk in a very good position. It also comes shortly after Elon Musk and GM Chief Executive Mary Barra met with President Donald Trump at the White House to discuss tax reform and infrastructure. 

    According to sources, Tesla rose 3.26 percent to a record high of US$312.39 on April 10. Its market value of US$50.887 billion exceeded GM's by about US$1 million.

    Over the last month Tesla sales have grown by 35 percent as investors put their money on Musk. According to sources, investors believe that the carmaker will revolutionize the automobile and energy industries. 

    When you compare Tesla sales to the declining share performance by GM over recent years, the shift is coming from the fact that most people are opting for more high-end cars which are cutting-edge when it comes to technology. 

    Tesla's market capitalization is now equivalent to US$102,000 for every car it plans to make in 2018, or US$667,000 per car sold last year.

    By comparison, GM's market capitalization is equivalent to US$5,000 per car it sold in 2016.

    ​However, experts are asking — if Tesla is worth so much, why are taxpayers still subsidizing it?

    According to sources for every Tesla car sold, US federal taxpayers have to pay US$7,000. State taxpayers also have to pay, for example in California, they contribute US$2,500.

    Some experts are now calling on this additional tax to be stopped. 

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    Tags:
    net worth, vehicles, electric cars, market, car market, innovation, manufacturing, shares, business, technology, car, Tesla, General Motors (GM), Elon Musk, US
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