Tesla became the first publicly listed US automaker to cross US$100 billion in market valuation following a strong rally in shares of the electric carmaker over the past three months.
On Wednesday, Tesla closed at US$569.56 on the Nasdaq market, yielding a valuation of US$102.66 billion — more than the value of Ford Motor and General Motors combined.
The stock rose more than 4 percent on the day, continuing a rally that has more than doubled the share price in the last three months.
The rally has been fueled by a rare quarterly profit in October, news of production ramp-up in its China factory and better-than-expected annual car deliveries, Reuters noted.
Tesla’s market value now puts CEO Elon Musk a step closer to earning the first US$346 million tranche of options in a record-breaking pay package.
The US$100 billion market capitalization needs to stay for both a one-month and six-month average in order to trigger the vesting of the first of 12 tranches of options granted to Musk to buy Tesla stock, according to Reuters.
In a bullish report Wednesday, Wedbush analysts said robust demand in China and Europe alongside “aggressive” trajectory of Gigafactory 3 production will boost Tesla’s fourth-quarter earnings.
“The skeptics have been proven wrong, and the US$100 billion market cap is sending the bears into hibernation mode,” Reuters quoted a Wedbush analyst as saying.
Tesla is set to report its earnings on Jan. 29 after US market close.
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