Tesla shares on Wednesday crowned their recent record run with the title of the most valuable car manufacturer in the world
The papers of the electric car manufacturer had risen to a peak of USD 1,135.33, the highest level in its history. At this point in time, Tesla was worth almost 211 billion US dollars and thus weighed about 9 billion dollars more than Toyota. The Japanese had been ahead in the race for the highest market capitalization so far.
By the end of trading, Tesla shares had risen by 3.69 percent to 1,119.63 US dollars. They were thus among the favourites in the technology stocks index NASDAQ 100, which at times rose by around 1 percent in the middle of the week.
The months-long rally of Tesla papers already gained new momentum at the beginning of the week. In an e-mail to employees on Monday, CEO Elon Musk expressed his confidence that the electric car manufacturer will not have to post a loss in the second quarter of the fiscal year. Investors are currently speculating that Musk is right. If so, Tesla would post its fourth consecutive quarterly profit, extending the longest stretch of profitability since its founding in 2003.
Some analysts believe that a positive surprise is possible. Surprisingly high deliveries or unexpectedly high cost savings may have ensured that Tesla continued to operate profitably in the second quarter of 2020.
Overall, the experts are divided. Of the 36 analysts surveyed by the Bloomberg news agency, only 9 advise buying. The biggest optimist is Philippe Houchois of Jefferies, who has announced a target price of 1,200 dollars. Compared to the current level, this would be a plus of a good seven percent.
11 experts, on the other hand, prefer to stay on the sidelines for the time being. 16 experts even advocated selling the paper.
The illustrious CEO and major shareholder Elon Musk has ignored or broken many of the established rules and standards of the automotive industry in the ten years since he took Tesla public and sold cars online and assembled vehicles in expensive California. But while shareholder value has risen, a gap has remained between Tesla and the world’s largest car manufacturers. Tesla produced 103,000 vehicles in the first quarter, or about four percent of the nearly 2.4 million Toyota built. The Japanese based their brand’s reputation on the promise of using mass production to reliably produce affordable cars.
Positive quarterly results and a high market capitalization are meanwhile prerequisites for Tesla to be included in the most important US stock index, the S&P 500. This would give more attention to the shares and could further drive the rally.
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NEW YORK (dpa-AFX Broker) At USD 1,135.33 they reached the highest level in their history. Most recently, they were up 3.84 percent to 1,121.26 dollars. With a market capitalization of a good 207 billion dollars, Tesla has passed Toyota by and is thus – measured by market value – the most valuable car manufacturer in the world.
The months-long rally of Tesla shares has already gained new momentum at the beginning of the week. Investors are currently speculating on a fourth consecutive quarterly profit. Positive quarterly results and a high market capitalization are prerequisites for Tesla to be included in the most important US stock index, the S&P 500. This would give more attention to the shares and could further drive the rally.