The stock market value of the United States based electric car maker tesla surged past that of the social media giant Facebook for the first time as its market value also touched anew high on Thursday driven by heavy trading.
There was an almost 8 per cent jump in the shares in the company that is led by Elon Musk and its shares ended the session on Thursday at $816 which gave the company a market capitalization of $774 billion. That market value made Tesla the fifth most valuable company on Wall Street, trailing US tech giants such as the Google-parent Alphabet but ahead of Facebook.
According to Refinitiv data, there was an almost 2 per cent rise in the share price of Facebook which put the stock market value of the largest social media company at $765 billion.
During the trading session on Thursday, investors bought and sold more than $39 billion worth of Tesla's shares which is a record for the company and more than the next three most traded companies combined, which were Apple, Alibaba Group Holding and Amazon.com.
The stocks of Tesla have increased in value by more than 700 per cent over the last 12 months and it has now become the most valuable auto company in the world by far even though it makes only a fraction of the number of vehicles of what are manufactured by its rivals like Toyota Motor, Volkswagen and General Motors.
With the record increase in market valuation on Thursday, the personal wealth of Tesla CEO and co-founder Elon Musk surged past that of Amazon's founder and CEO Jeff Bezos and according to a Bloomberg News report, that made Musk the richest individual in the world.
The latest surge in the stocks of Tesla came after its rating on the stock was raised from "underperform" to "sector perform" by the RBC.
According to the comments made in a research note by RBC analyst Joseph Spak, he acknowledged to have previously underestimated the ability of the electric car maker to utilize its soaring stock price for raising capital for financing the expansion plans of the company.
"We took a fresh look at the growth opportunity, what we got wrong about TSLA's positioning and the valuation and conclude that the stock price itself is likely to be somewhat self-fulfilling to TSLA's growth and strategy," Spak wrote.
According to Refinitiv, for the entire year of 2020, analysts on the average expect Tesla to report total net profits of $1.2 billion whereas the analysts expect rival GM to report net profits of $5.8 billion and net profits of $27.1 billion by Facebook.
(Source:www.channelnewsasia.com)
There was an almost 8 per cent jump in the shares in the company that is led by Elon Musk and its shares ended the session on Thursday at $816 which gave the company a market capitalization of $774 billion. That market value made Tesla the fifth most valuable company on Wall Street, trailing US tech giants such as the Google-parent Alphabet but ahead of Facebook.
According to Refinitiv data, there was an almost 2 per cent rise in the share price of Facebook which put the stock market value of the largest social media company at $765 billion.
During the trading session on Thursday, investors bought and sold more than $39 billion worth of Tesla's shares which is a record for the company and more than the next three most traded companies combined, which were Apple, Alibaba Group Holding and Amazon.com.
The stocks of Tesla have increased in value by more than 700 per cent over the last 12 months and it has now become the most valuable auto company in the world by far even though it makes only a fraction of the number of vehicles of what are manufactured by its rivals like Toyota Motor, Volkswagen and General Motors.
With the record increase in market valuation on Thursday, the personal wealth of Tesla CEO and co-founder Elon Musk surged past that of Amazon's founder and CEO Jeff Bezos and according to a Bloomberg News report, that made Musk the richest individual in the world.
The latest surge in the stocks of Tesla came after its rating on the stock was raised from "underperform" to "sector perform" by the RBC.
According to the comments made in a research note by RBC analyst Joseph Spak, he acknowledged to have previously underestimated the ability of the electric car maker to utilize its soaring stock price for raising capital for financing the expansion plans of the company.
"We took a fresh look at the growth opportunity, what we got wrong about TSLA's positioning and the valuation and conclude that the stock price itself is likely to be somewhat self-fulfilling to TSLA's growth and strategy," Spak wrote.
According to Refinitiv, for the entire year of 2020, analysts on the average expect Tesla to report total net profits of $1.2 billion whereas the analysts expect rival GM to report net profits of $5.8 billion and net profits of $27.1 billion by Facebook.
(Source:www.channelnewsasia.com)
