Tesla’s missile rise raises its market value to more than 100 billion dollars

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Tesla logo on an electric car at the Brussels Motor Show on January 9, 2020. Photo: François Lenois – Reuters

(Reuters) – Tesla shares rose on Wednesday, becoming the first listed US car company with a market value of more than $ 100 billion, more than the value of Ford Motor and General Motors together.

Electric car maker shares rose 8.1 percent to $ 591.78 in late morning trade, continuing its rocket surge that has increased the share price to more than double in the past three months.

“The rise is in tune with the shift in demand for electric vehicles globally,” wrote Dan Eves, an analyst at Wedbush, in an email.

“Skeptics have proven wrong, and reaching a market value of $ 100 billion is pushing the bets to drop the price to the winter data.”

This comes less than a month after Tesla’s stock crossed the $ 420 barrier, the price that Elon Musk, CEO of the company, had previously said in a tweet that he would cancel the company’s listing.

Musk had said on Twitter that he had “arranged the financing” to cancel the company’s listing in August 2018, when the stock was in the mid-$ thirty-three, but soon fell under investor pressure and regulatory concerns.

Ben Callow, chief research analyst at Robert W. said. Bird and Co., which on January 9, downgraded the stock to neutral, “Liquidity concerns are not currently on the table, which opens … the base for new investors.”

Kalu added that the rise of the stock also helps to attract qualified employees. “In the technology sector where recruitment and staff retention is very difficult, especially in the San Francisco Bay area, the stock price helps.”

Tesla announces its results after closing transactions on January 29.

Prepared by Ahmed Elhamy for the Arabic Bulletin





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