Tesla has started the new year off strong, cementing its status as not only the most valuable automaker, but now also one of the most valuable companies in the world. The electric car company has had one its best years to date, despite the pandemic causing major slumps in sales and disrupting manufacturing and supply chains worldwide within the global auto industry.
Last year saw the electric car giant achieve milestone after milestone with its stock price soaring by 740%, after exceeding its production target of 500,000. Shares of the company, which joined the benchmark S&P 500 index in December, climbed to a new record high in the first trading session of 2021. The price increased as much as
5.4% at $743.74, extending the previous year’s more than eight-fold surge. The stock-price surge added up to $36 billion to the automaker’s market capitalization, pushing it past $700 billion for the first time. This revelation comes just 5 years after Ceo Elon Musk “insane call” that the company would be worth $700 billion in 2025.
Although Tesla’s impressive numbers exceeded Wall Street analysts’ expectations, the company is under newfound pressure to continue to keep up this momentum.
Demand remains high in China for electric vehicles at large as Tesla’s new Model Y continues its production in Shanghai, with deliveries to begin shortly. However, the company will need to ramp up production to satisfy demand by speeding up the construction of its new factories in Austin, Texas, where the company plans to build its eventual Cybertruck and Brandenburg, Germany. Tesla’s Berlin factory remains on track to open in July, despite the recent issues it has had to navigate, including temporary water shut offs and court orders.
In spite of Tesla’s staggering success and consumer winning formula the question still remains as to whether the electric car giant can hold on to its title as the top electric car producer of the world, with an abundance of competition, both upstart and traditional, set to hit the market this year.
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