Ali Hasan
Tesla shares are on a dream run and they’re showing no signs to stop anytime soon and this has helped it to become the 5th most valuable company in the world surpassing Facebook. It’s now behind only 4 companies that are as follows:-
- Apple – $2.25 trillion
- Microsoft – $1.66 trillion
- Amazon – $1.59 trillion
- Google – $1.21 trillion
It’s currently trading at $880 per share and has a total market capitalization of $834 billion. As the stock price continues to surge, Tesla investors continue to see the fruits of the faith pay off. The stock has eclipsed 700% in gains over the past year, trading at as little as $86.05 on Wall Street’s first day of 2020.
Fed by continuous surges in demand in the United States, Europe, and China, Tesla’s focus has been to figure out production bottlenecks, as well as improve the efficiency and cost of its battery cells to create a more affordable electric vehicle.
Despite a Tesla’s cost, which is slightly more expensive than a gas-powered car, it is not stopping consumers from going electric. The Model 3, which starts at $37,990, was the most popular EV in the world last year, dominating sales figures in the U.S. and China.
The automaker has now been working on solving the puzzle of demand in Europe, where EVs are becoming more popular than gas cars. In December, the Model 3 outsold every vehicle in the United Kingdom. Even some of the year’s most popular gas cars, like the Ford Fiesta and the Volkswagen Golf, were not able to keep up with the all-electric sedan from Tesla.
Tesla’s rise in valuation is more than impressive considering where it was at this point just 15months ago. In October 2019, Tesla had just hit a $53 billion valuation, overtaking GM as the most valuable car company in the world. However, Tesla is over 15 times more valuable now than it was at that point. Incredibly, the stock continues to climb based on the company’s influx of advancements, coupled with a consecutive profitable quarter streak of five.
With this surge, founder Elon Musk’s net worth rose by $14.5 billion in a day to $209 billion at the end of Friday, as per Bloomberg Billionaire’s Index. This week, Musk surpassed Jeff Bezos as the richest person in the world. Net worth of Amazon Inc’s chief stood at $186 billion on Friday, while that of Microsoft’s Bill Gates was at $134 billion.
