Shares of Tesla continued their meteoric rise last week, setting another record and further widening the gap between the Silicon Valley electric carmaker and its traditional auto industry rivals.
Tesla shares rose to $ 2,290 in midday trading before stabilizing at $ 2,240, the highest price since the company went public at $ 17 a share in 2010.
Tesla shares have risen more than 420% since the beginning of this year, turning some retail investors into millionaires.
While other automakers are being forced to invest billions to overhaul the operations of their internal combustion engines to produce battery-powered cars, investors are confident that Tesla can make the switch from a niche automaker to a leader. cleaner cars worldwide.
Tesla became the world’s most valuable automaker by market capitalization when it surpassed former leader Toyota on July 1. The company now accounts for 41% of the total market capitalization of a group of 12 of the world’s largest automakers.
Tesla produces only a fraction of the vehicles sold by established global automakers, many of which are considered growth engines for their local economies.
Japan’s Toyota and Germany’s Volkswagen sold 10.5 million and 11 million vehicles respectively during fiscal 2019. That compares with the 367,200 vehicles Tesla delivered in 2019.
Tesla has said it will deliver at least half a million vehicles by the end of 2020, less than 5% of Toyota and Volkswagen’s annual sales.
But Tesla weathered the industry-wide fallout from the novel coronavirus pandemic and reported a second-quarter profit in July, overcoming a hurdle that could lead to the electric carmaker’s inclusion in the S&P 500 index.