- The market capitalization of Tesla topped $400 billion on Wednesday. It had reached $200 billion about two months earlier. In January it reached $100 billion for the first time.
The most successful automotive manufacturer in the world has just reached yet another landmark.
The market capitalization of Tesla topped $400 billion on Wednesday. It had reached $200 billion about two months earlier. In January it reached $100 billion for the first time.
On Wednesday, in terms of market cap, Tesla jumped over Johnson & Johnson along the way. There are only seven companies worth more in the S&P 500 index including $447 billion for Visa and $2.16 trillion for Apple.
Last week for the first time the car manufacturer, headed by Elon Musk, reached the mark of $2,000 per share, also after this year’s rally that sent shares to skyrocket. Tesla climbed up as much as 8 percent in intraday trading Thursday to touch $2,021.99 per share before paring some gains.
The surge propelled Tesla’s market capitalization to almost $372 billion, surpassing Walmart’s market valuation of about $371 billion. Earlier in the year, Tesla became the world’s most successful automaker after overshadowing the market value of Toyota.
This year, Tesla shares were on a tear, fuelled by strong vehicle delivery results, a streak of profitable quarters, and eligibility to be included in the popular S&P 500 index.
The Company announced its first 5-for-1 stock split earlier this month. Through shareholder will receive four additional shares for each of their own at the end of Friday’s trading, to be issued at the end of trading on August 28. On August 31 Tesla will start trading on a stock-split-adjusted basis.
Tesla’s share value has more than quintupled from a low in March, bringing the company’s market capitalization to now over $400 billion, which is greater than both Walmart Inc. and Johnson & Johnson. The explanation for the rally is less evident, while analysts and experts from Wall Street have become more optimistic, pointing to growing expectations that the stock will enter the S&P 500 Index, the forthcoming “Battery Day” of the business where new technologies can be introduced, and renewed consumer interest for electric cars.
Earlier this week the company’s chief executive Elon Musk said on Twitter that mass-producing batteries with substantially higher energy density were within reach. Tesla will be holding its battery event on Sept. 22.