Investment

Tesla becomes most valuable automaker in the world as stock price hits $1000

Tesla has overtaken Toyota to become the most valuable car manufacturer In the world by market capitalization after its stock price hit $1000 for the first time on Wednesday. This comes after several positive indicators for the company including news of a ‘million mile’ battery breakthrough by the company and its suppliers. Tesla’s new car sales in China are also on the rise, with a 150% month on month rise in May. Tesla shares hitting the $1000 mark represents a colossal 360% gain over the last 12 months as the company went from strength to strength.

Another factor is Tesla CEO Elon Musk’s decision to reopen factories last month despite the ongoing coronavirus situation. While this may have had a positive impact on stock price, it has led to at least six Tesla employees contracting COVID-19. Musk argued against a forced lockdown, calling it unconstitutional and fascist. Tesla even sued Alameda County, where one of its factories is located, over enforcing lockdown and stay-at-home restriction before dropping the lawsuit after local officials allowed the factory to reopen.

Despite the company’s recent successes and general upward trajectory, Wall Street firms like Goldman Sachs and Morgan Stanley are not buying into the $1000 valuation of Tesla’s stock. While general long-term sentiments about the company’s stock remains positive, analysts on Wall Street believe the current price of the stock does not take into account ever increasing competition in the electric car market. Well established auto manufacturers, as well as new startups have been gunning for Tesla’s market share for a while now and they seem closer than ever.

Sponsored
Taha Abdullah

Leave a Comment
Share
Published by
Taha Abdullah

Recent Posts

WhatsApp Beta Partners with Google for Innovative Image Search Feature

When it comes to Android messaging apps, WhatsApp stands out as one of the best.…

32 mins ago

Farrukh Sabzwari Appointed as CEO of PSX, Set to Serve for Three Years

Farrukh H. Sabzwari has been appointed Chief Executive Officer (CEO) of Pakistan Stock Exchange Company…

1 hour ago

250 Government Schools to Be Run by Private Sector

RAWALPINDI: The chairman of the Punjab Education Foundation, Malik Shoaib Awan, stated on Monday that…

2 hours ago

Pakistan Launches First National Sex Offenders Register to Combat Sexual Violence

Pakistan has taken a significant step towards addressing sexual violence and abuse with the introduction…

3 hours ago

SBP Chief Reports October Remittances Exceed $3 Billion

KARACHI: The State Bank of Pakistan (SBP) is anticipating $500 million from the Asian Development…

3 hours ago

Sindh Assembly Reveals 28,500 Govt Employees’ Spouses as Illegal BISP Beneficiaries

The Sindh Assembly was informed that over 28,500 employees of the provincial government were unlawfully…

4 hours ago