Tesla capitalization exceeded $ 700 billion – now it is more expensive than Facebook

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Last updated on December 8th, 2022 at 02:43 pm

Tesla capitalization exceeded $ 700 billion – now it is more expensive than Facebook

In terms of production volumes, Tesla is not large, but it surpasses all the oldest automakers in capitalization. Tesla shares kicked off the New Year with a rally, bringing the electric car maker’s capitalization to over $ 700 billion for the first time in its history.

tesla
tesla

Over the past twelve months, Tesla’s stock price has risen more than eightfold, the company’s stock was included in the S&P 500 index and underwent a split to make it available to investors on a small budget. However, at the current rate of almost $ 730 per share, they are again moving away from novice investors. The services existing on the stock market now allow solving this problem without any initiatives from the issuer.

Recall that last year the company finished with 499 550 shipped electric vehicles, a little short of the coveted milestone of half a million copies. On the other hand, electric vehicle production reached 509,737 cars last year, so it’s hard to deny that they are growing at an impressive pace. For example, in the fourth quarter, Tesla produced 71% more electric vehicles than a year earlier.

The analysis of these statistics undoubtedly supported Tesla’s stock price. Sales of locally assembled Model Y crossovers that began in China for some time brought down the company’s local website, which indicates a high interest of buyers. Rumours created a positive information background about the upcoming update of the Tesla Model S and Model 3.

If we calculate the value of Tesla’s capitalization based on the total number of shares issued by the issuer, it reached $ 820 billion, overtaking Facebook with its $ 780 billion. This methodology takes into account those shares that are paid to management as compensation for labour. It is the securities of the company he founded that form the bulk of Elon Musk’s income. Last year, he admitted that he intended to spend the proceeds on space exploration.

In his next forecast for the most unexpected events of 2021, Vice-Chairman of Blackstone Advisory Partners Byron Wien mentioned the possibility of Tesla buying one of the classic automakers. The company has the necessary capital for such a manoeuvre. Still, the question is different – if at all stages of Tesla development Elon Musk opposed his approaches to traditionally used competitors, why would he need to buy another automaker this year? If Tesla wanted to get access to the pipeline of competitors, this could still be explained rationally. Still, for this company, the main constraint is the volume of available traction batteries, and none of the traditional participants in the automotive market can help it solve this problem.

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