Tesla made history this Tuesday by becoming the first publicly traded car company in the US to achieve a market valuation of over $100 billion.
This achievement underscores the strong confidence of Wall Street in an electric vehicle-dominated future for the automotive industry. Surpassing the $100 billion mark comes just a month after Tesla’s shares reached $420, the figure at which Elon Musk had proposed to take the company private.
At the close of trading, Tesla’s shares were up 1.4% to $555, following an earlier boost when New Street Research raised the stock’s price target to $800, causing a 7.2% surge in Tesla’s stock price. With this valuation, Tesla now exceeds the combined value of Ford Motor Co and General Motors Co.
Over the past three months, Tesla’s stock has doubled in value, a trend that began after the company reported an unusual quarterly profit in October. These gains were further fueled by positive news around the renovation of Tesla’s factory in China, stronger than expected delivery numbers, and a legal victory in Michigan allowing for direct deliveries to customers in the state.
