Tesla Inc.’s share rises as much as 5.6% on Friday, pushing the electric vehicle maker’s market capitalization north of $800 billion for the first time ever, Reuters report.
This rise in market capitalization brings Tesla closer to the trillion dollar club, than it earlier was.
The astronomical rise in the value of Tesla shares has helped Chief Executive Officer, Elon Musk, surpass Amazon inc.’s top boss, Jeff Bezos, to become the world’s richest man.
According to a report by Forbes, as at Friday’s session, Musk’s 21% stake in the electric vehicle company, contributes more than $170 billion to his net worth, dwarfing the combined market capitalization of three Detroit based automakers – General Motors, Ford Motor Co and Fiat Chrysler Automobiles.
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In the previous session, Tesla’s market value had crossed $774 billion to become Wall Street’s fifth most valuable company, trailing behind Google’s parent company – Alphabet Inc, and ahead of social media giant Facebook Inc.
Morgan Stanley, a Wall Street analyst, lifted its price target for the automaker to $810 on Tuesday, saying strong demand and new factories would keep Tesla far ahead of competitors in the electric-vehicle sector.
RBC Capital’s analysts said RBC didn’t expect Tesla to leverage its soaring stock price to raise funds last year.
“There is no graceful way to put this other than to say we got TSLA’s stock completely wrong,” RBC said.
Analysts in the industry consider Tesla’s fortunes an anomaly as the company, which has only been in existence for 17 years, has production that is just a fraction of that of large rivals such as Toyota Motor, Volkswagen and General Motors.