Analysts noted that Tesla’s share price rose $200 in three months and is now more than double its summer low. Tesla’s shares rose to $433 in U.S. trading Friday, giving it a market value of $77.8 billion. The market value has surpassed That of Hyundai Motor ($22 billion), Ford Motor ($37 billion), General Motors ($52 billion), BMW ($52 billion) and Daimler ($60 billion).
Original title: Tesla’s market value hits $77.8 billion, more than five established car companies
But in terms of sales, Tesla has sold only 350,000 cars in the past 12 months, compared with 4.6 million in 2018 and 3 million at Hyundai and General Motors. By Friday’s close, Tesla was down 0.13 percent at $430.38.
In fact, of the traditional established car companies, only Volkswagen (VWAGY.US) has a market capitalisation higher than Tesla, an established German car company that employs more than 270,000 workers in Germany alone and has recently overtaken Toyota as the world’s largest carmaker in terms of sales.
Analysts point out that Tesla’s surge in share prices is due to short-selling, which is that when stocks are short-stocked and there is too much demand, stock prices rise rapidly and shorters need to buy stocks in the market when they close their positions, pushing up prices. The company remains Wall Street’s most hated, and shorting has not changed its short-sitrate strategy. Tesla’s short positions currently total $10.297 billion. It’s like in 2008, when the phenomenon happened to Volkswagen, making it the world’s most valuable company in just a few hours.