Tesla’s shares surged to a historic high on Thursday, with the stock market valuation of the electric car company briefly exceeding Facebook’s for the first time.
During the session, the business headed by Elon Musk’s stock momentarily reached $811.61, bringing its market capitalization at $769 billion.
According to Refinitiv numbers, the company was last up 5.8 percent, bringing the business a valuation of $758 billion, relative to Facebook’s stock market value of $765 billion.
The California car manufacturer has been by far the most valuable auto maker in the world, up over 700 percent in the past 12 months, amid demand that is a fraction of rivals such as Toyota Motor, Volkswagen and General Motors.
Musk exceeded Jeff Bezos of Amazon.com Inc to become the wealthiest individual in the world, Forsige reported on Thursday while quoting Bloomberg.
On average, analysts expect Tesla to record net income of $1.2 billion for 2020, relative to net profits expected from GM of $5.8 billion and net profits expected from Facebook of $27.1 billion, according to Refinitiv.
The new boost for Tesla came after RBC lifted its rating on Tesla to “sector performance” from “underperform.”
“We took a fresh look at the growth opportunity, what we got wrong about TSLA’s positioning and the valuation and conclude that the stock price itself is likely to be somewhat self-fulfilling to TSLA’s growth and strategy,” Spak wrote.
In his research note, RBC analyst Joseph Spak said that he had previously underestimated the potential of Tesla to use its growing stock price to raise capital to finance the growth of the company.