Tesla shares went up for a fourth session in a row this week, bringing the company’s market cap for the over $1 trillion for the first-time ever.
The stock closed over 12.7% to get to $1,024.86 a share. Tesla’s ytd advance came in at almost 45.2%, with the stock doing better compared to the S&P 500’s 21.6% boost over this same period.
With a $1 trillion market cap, Tesla joins a new exclusive club of large-cap tech companies with a market value of around that level. This week, the only U.S. companies with a market cap of $1 trillion were Apple, Amazon, Microsoft and Alphabet. Facebook was latest member before Tesla in late September.
A bevy of positive news helped boost the stock to all-time highs. Earlier this week, car-rental firm Hertz announced they had ordered 100,000 Tesla electric vehicles, with these scheduled for delivery by the end of 2022. Hertz said it was creating the “largest EV fleet in the rental industry in North America and one of the largest globally,” and it ordered new EV charging infrastructure to use worldwide.
“While Hertz is now working to electrify its rental car fleet, Tesla having an order of this size highlights the larger EV adoption which is happening as part of this green wave now being seen in the United States,” said Wedbush analyst Dan Ives in a note.
“While Europe and China have been ahead of the United States, it seems that demand is increasing for EVs domestically with Tesla pushing the charge and OEMs like GM, Lucid Motors, Faraday Future, Ford, and many others going after this $5 trillion market opportunity over the upcoming decade.”
This company’s recent all-time high in deliveries, and its cost-cutting steps, helped Tesla have a third straight record quarterly profit for its fiscal Q3. In its earnings report released last week, Tesla also spoke about its guidance to get 50% average annual growth in vehicle sales over a multi-year time frame.
The combination of news has driven some Wall Street analysts to become more bullish on the stock. On Sunday, Morgan Stanley’s Adam Jonas increased his price on Tesla to $1,200 from $900, representing one of the largest on Wall Street.
Author: Scott Dowdy
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