WRAL TechWire
Tesla, Elon Musk’s electric car company is one of the most popular car companies on the planet and following its growth and popularity over the years, today, Tesla’s market valuation hit and surpassed the USD 1 trillion mark.
The electric car company has reached crossed this milestone after about 11 years since it first became public and it has now entered the elite class of companies, joining Apple, Google, Facebook and Amazon, as they have already crossed this milestone in the technology sector.
This is great news for Tesla as its market valuation surpasses USD 1 trillion cap mark. On Monday, the company’s share value in the market hit USD 998.22, as mentioned in a report by TechCrunch. USD 2 short of hitting USD 1000 per share and then the time came when it shot past the USD 1000 apiece share price, this was the first time that Tesla shares reached this much height and the shares closed up at USD 1,024.86.
We know for a fact that electric cars are the future and with some developments in the sector and global acceptance, electric cars will soon replace combustion cars in full swing, and Tesla is already the most popular electric car company. However, sometimes it is difficult to assume what factor is pushing the popularity of Elon Musk and Tesla, is it Elon Musk who is making Tesla popular and successful or is it, Tesla who is doing the same thing for Musk, the competition is tough but at the end of the day, it is another milestone for the electric car company, its shareholder and its owner- Mr Musk that the company has crossed the USD 1 trillion market cap.
Furthermore, there are several factors that have impacted the growth of Tesla in the past few weeks and contributed to Tesla’s sudden growth. According to recent reports, rental giant Hertz, which has just emerged from the brink of bankruptcy has announced to buy over 100,000 electric vehicles from Tesla. This is a huge number that will definitely give Tesla the capital boost that it requires, and post this announcement, Tesla shares jumped vertically high.
Another factor was the validation from Morgan Stanley analyst Adam Jonas, who was raising the price target for Tesla from USD 900 to USD 1,200 and re-iterating its rating in the global market.
The third and the most significant reason was the share market’s momentum with Tesla as last week, the electric car company announced to have reported net income of around USD 1.62 billion in its third quarter which is almost a five-fold increase from what it earned last year in the same quarter.
All of these factors contributed to Tesla’s growth over the past few weeks, successfully making it a trillion-dollar company.
