Tesla (TSLA) reaches new all-time high, surpasses $900 billion valuation

by 9SIX
tesla-tsla-reaches-new-all-time-high-surpasses- -billion-valuation

Tesla stock (TSLA) has reached a new all-time high, surpassing a market capitalization of $900 billion.

Until somewhat recently, Tesla was a rare pure play in all-electric vehicles and sustainable energy on the public market.

It attracted a lot of retail and institutional investors who bet that the company would be able to achieve volume production of its vehicles.

The bet has paid off.

Tesla gradually increased the production of its vehicles, and last quarter, it hit the important milestone of achieving an annual run rate of 1 million electric cars.

It helped push Tesla’s stock up over the last few days, and it has just now hit a new all-time high at $907 per share:

In turn, it pushed the automaker’s valuation to a new record of $908 billion, which is more than almost half of the auto industry put together.

Of course, most Tesla investors would argue that the company is not comparable to most other automakers.

Tesla is addressing both the problem of emissions at the tailpipe with electric cars, and it is also trying to fuel them with clean energy through its “Tesla Energy” division that installs solar and energy storage.

In recent years, CEO Elon Musk has mostly stayed away from commenting on Tesla’s rapidly increasing valuation.

If he would, it was generally to agree that it was “too high.”

In an email to employees two years ago, the CEO said to “ignore the stock price,“ as he believed it to be a distraction.

However, he didn’t follow his own advice just last month.

In another email to employees obtained by ElectrekMusk said that Tesla (TSLA) is worth $3,000 a share “if they execute really well.”

This stock price target is for 2025 and it has been introduced by Ark Invest, a fund that has recently been selling a lot of its Tesla shares.

Source: electrek

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