The market value of Californian automotive company Tesla has increased by 7%, surpassing that of Ford’s and General Motors’ combined worth.
For the first time, Tesla shut with a record of $492.14 per share or almost $89 billion market capitalization which is $2 billion higher than the collective rate of Detroit-based General Motors and Ford.
Tesla’s shares rose more than twofold after reportedly making massive vehicle stock in the past three months of the year. A total of 367,500 cars were delivered worldwide by Tesla in 2019.
“Five years ago no one knew what a Tesla was. It has usurped BMW as an aspirational car. Tesla has more going on in those four walls than we know about,” said Ben Kallo, an energy technology analyst at Robert W Baird.
He also noted that the company’s founder and chief executive, Elon Musk, possesses a “magic dust” that helped discover more talented staff, thus, attract more clients.
David Kudla, the chief investment strategist at MainStay Capital Management, affirmed that Tesla is “back to being a story stock” but also warned about few undesirable possibilities.
“There are still some problematic issues out there, chief among them is what will its sustained profitability look like, and when will it start to be valued like a car company and not a tech company.”
Numerous investors and analysts stay skeptical about the company’s capacity to reliably convey benefit and income as it failed to meet its targets in the previous years.
Despite Tesla’s value zooming, Refinitiv data also disclosed that more analysts prefer to have it sold than bought while only less than ten voted impartially.
Nonetheless, Tesla’s head, Musk, still remains optimistic in advancing his company further especially now that it has also invested in battery production housed in Nevada which experts say to become the world’s largest building once completely developed.