New York: Tesla’s market value soared to more than US$500bil Tuesday ahead of its listing on the S&P 500, with its stock finishing up 6.4% or by nearly US$32bil in 24 hours.
That gave it a valuation of US$526bil, a rise of more than 560% since the start of the year; and means founder Elon Musk, who owns 18% of the company, earned US$100bil in the same period.
Tesla is riding a wave of enthusiasm from investors who see the electric car maker’s future as bright.
Its share price has also been boosted in recent weeks by Joe Biden’s victory in the US presidential election. The Democrat has promised to promote the development of electric vehicles in the country.
The announcement that Tesla will be listed on the prestigious S&P 500 index as of Dec 21 has added to the momentum.
The company’s soaring value means that it can borrow or raise money on more advantageous terms than competitors, CFRA analyst Garrett Nelson said in a note. That “is critical as Tesla continues to build new factories and deliver on its goal of increasing annual auto volumes by 40 times over the next decade, ” he said. — AFP