Tesla is now more valuable than Toyota as stock tops $1,000
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Tesla’s stock surged above $1,000 on Wednesday — propelling the Elon Musk-led auto company above Toyota to become the world’s valuable automaker.
Shares of the electric car marker, which have been revving all year, spiked more than 8 percent on Wednesday after it was revealed that Musk is gearing up for mass production of a hotly-anticipated semi truck. In an email to employees before markets opened on Wednesday, Musk announced that it’s “time to go all out” on the company’s first big rig truck.
The stock closed up 8.9 percent, or $84.38, to $1025.05 a share, giving it a market capitalization of $190 billion.
Ford, by contrast, is valued at $27 billion, and General Motors at $41 billion.
Tesla turned heads in January when it became more valuable than the two largest American automakers — General Motors and Ford — combined. But Wednesday’s surge means it’s also now more valuable than Toyota with a market capitalization of $182 billion.
Tesla’s acceleration has been stunning, especially for a company that has not had a profitable year, despite some profitable quarters. This time last year, Tesla was worth just $212 per share, with the automaker piling up losses quarter after quarter.
In the ensuing 12 months, Tesla has righted the ship, streamlining its production line for its cheapest car — the Model 3 sedan — and opening a factory in Shanghai to get a foot in the ultra-lucrative Chinese market.
The automaker delivered a surprise profit in October 2019, and has since delivered three straight profitable quarters.
But the road to $1,000 hasn’t been without setbacks, however. He’s also feuded with California officials about coronavirus lockdowns that have shuttered Tesla’s production. The rabid Twitter user also sent Tesla’s shares tumbling more than 10 percent last month when he tweeted that “Tesla stock price is too high.”
Musk’s net worth increased by $2.4 billion on Wednesday, with his $42.9 billion fortune making him the 23rd richest person in the world, according to Forbes.