Shares rose more than 12% to nearly $1,045 on Monday, up two places of good news: Hertz announces record orders 100,000 Tesla for its fleet,
And influential Morgan Stanley auto analyst Adam Jonas recently raised his price target on Tesla to $1,200 per share.
That huge one-day gain pushed Tesla past the $1 trillion mark. That market capitalization is less than half that of Apple, which is the world’s most valuable company, worth $2.5 trillion, and the No. 2 Microsoft, which is worth $2.3 trillion. Other members of the trillion-dollar club include Google parent Alphabet, which is worth $1.8 trillion, and Amazon, worth $1.7 trillion.
Tesla on Monday overtook Facebook, whose shares are slipping on Friday morning following the release of a large trove of internal documents, known as “The Facebook Papers
Facebook (American Plan)
shares were down more than 5%
in late trading Friday, and down 18% from the peak earlier this year when the company was valued at more than $1 trillion. Facebook’s market cap has since fallen to $916 billion.
For Tesla, by contrast, Wall Street’s enthusiasm about the future of electric vehicles has pushed the company’s market value to more than the 11 largest global automakers combined. Tesla has more than tripled the price Toyota (tm)
, the second most valuable automaker with a market cap of about $280 billion, and boasts sales and profits that dwarf those of Tesla.
Tesla last year only sold 500,000 cars
Worldwide – meaning its current market value equates to approximately $2 million in sales per vehicle.
The company has sold 627,000 cars so far this year, and is targeting close to one million sales for the full year. That would still equate to a valuation of more than $1 million per vehicle, but clearly investors are still betting that Tesla will hit its goal of 50% or more in annual sales growth in the coming years.