Elon Musk, founder of SpaceX and CEO of Tesla Inc., arrives at the Axel Springer Award ceremony in Berlin, Germany, on Tuesday, December 1, 2020.
Liesa Johannssen-Koppitz | Bloomberg | Getty Images
Tesla, an electric vehicle maker, outperformed Facebook in terms of market capitalization after markets opened on Friday.
Shares of Tesla jumped around 5.5% at 9:03 am ET to give it a market cap of $ 802.6 billion, while Facebook shares fell. Facebook now has a market cap of about $ 755.8 billion.
The jump makes Elon Musk’s automotive company the fifth largest capitalization benchmark company when it counts Alphabet stock classes together. It now only tracks Apple, Microsoft, Amazon and Alphabet.
While the brand is largely symbolic, it means Tesla’s dramatic rise in a short period of time. Tesla became the first publicly traded $ 100 billion U.S. carmaker in January 2019. Just ten months later, the company exceeded the $ 500 billion market cap. The stock gained more than 700% in 2020.
The company joined the S&P 500 in December, ending a strong year of performance. Led by Musk, Tesla has made five consecutive profitable quarters. Tesla delivered 4,99,550 vehicles a year and is currently building new factories in Austin, Texas and Brandenburg, Germany, among other efforts to increase its production and sales volume.
Meanwhile, Facebook shares gained about 32% throughout 2020.
Tesla shares rose this week following a very bullish note from Morgan Stanley analyst Adam Jonas and news of a Democratic majority in the Senate after the second election in Georgia.
Among other things, President-elect Joe Biden aims to create one million new jobs in the domestic automotive industry, expand electric vehicle charging infrastructure in the United States, and increase solar and other renewable energy. here as part of your clean energy plan. Apparently, it would be easier for him to advance these plans with a democratic majority in the Senate. Democrats sealed the Senate majority this week after runoff rounds in Georgia.
Thursday’s rise in Tesla’s share price caused Musk to overtake Jeff Bezos, who had been the richest person since 2017 and is currently worth about $ 184 billion. Musk started in 2020 worth about $ 27 billion and was barely among the 50 richest people.
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