Tesla Motors Beats Toyota, Is World's Most Valuable Auto Maker
Tesla Motors stock price climbed upwards of $1000 per share on Wednesday. This made it the second-largest auto maker in the world next only to Japans Toyota Motor Corp. The jump is a huge rise from the drastically low prices that Tesla stocks had hit late last month.
Tesla Motors has surpassed Toyota to become the most valued auto maker in the world. The jump in the company¡¯s value was observed after its stock price climbed upwards of $1,000 per share on Wednesday.
The rise of Tesla Motors share price was propelled by its CEO Elon Musk¡¯s response to a tweet that confirmed the company¡¯s next move to be the volume production of its all electric semi truck.
In a report by Reuters, it is mentioned that Musk had directed his staff to bring the Tesla Semi commercial truck to ¡°volume production.¡± Musk did not specify a time frame for this. He did, however, confirm that the volume production was soon going to start and that the rumours about the internal email were accurate.
Post the confirmation by Musk, Tesla¡¯s shares rose by 6% to hit $1,000 on Wednesday. At the $1,000 mark, the total evaluation of the company made it the second-largest auto maker in the world, next only to Japan¡¯s Toyota Motor Corp.
(Representative Image: Reuters)
In addition to Musk¡¯s tweet, Wedbush Securities, a financial services and investment firm, made a bullish call on the Tesla stock, lifting its target price to $1,000, and said Tesla could have ¡°more room to run.¡±
Further to help the surge in the share price is the anticipation of Tesla¡¯s new ¡°million-mile¡± battery technology. The battery, claimed to have been decoded by now, could possibly deliver much better range than the existing batteries, at a lower cost and longer life.
As a cumulative result, the company¡¯s stock rose to an all time high of $1,160 up by $75.93, making it the most valuable auto maker in the world.
Tesla¡¯s increased share prices could allow Musk for another payout from a stock compensation plan tied to the company¡¯s market capitalization.
The jump is a huge rise from the drastically low prices that Tesla stocks had hit late last month. With Musk¡¯s meltdown on twitter, Tesla had lost billions of dollars on the stock market. Now that Musk is back to his hearty self, it can easily be seen as a good sign for the company, both on and off the stock market.
