Tesla hits $500 billion market cap for the first time in its history. The tech giant, led by eccentric CEO Elon Musk is rallying after UK news that petrol cars will not be sold past 2030. A lot sooner than previously announced.
The company has been on an upward surge in 2020, with its stock price increasing more than fivefold. While the mark is largely symbolic, Tesla became the first $100 billion publicly listed U.S. carmaker in January.
Shares of Tesla were trading at $540.40, up more than 3%, when markets opened.
Tesla surged past a $500 billion market cap on Tuesday after trading opened and its stock price surpassed $527.48 per share.
Tesla is set to join the S&P 500 before trading on Monday, Dec. 21, a move that pushed the shares higher earlier this month since money managers with funds that track the S&P 500 will need to buy the stock for their portfolios. Morgan Stanley also upgraded Tesla to a buy-equivalent overweight rating last week, the first time in years since the company put a buy rating on the stock.
The rally means Tesla has become by far the world’s most valuable car manufacturer, eclipsing Toyota, Volkswagen and General Motors despite producing a fraction of the number of vehicles.
It is now Wall Street’s seventh most valuable company, just behind Berkshire Hathaway and just ahead of Visa, according to Refinitiv data.