Tesla closed Tuesday up more than 13% and nearly $160 billion in market value

Tesla (Nasdaq: TSLA) rose more than 24 percent in early trading tuesday, closing up 13.73 percent at $887.06, giving Tesla a market capitalisation of $159.8 billion. Then, as of 22:45 BST, Tesla’s shares were trading at $901.58, giving it a market value of more than $160 billion.

Tesla closed Tuesday up more than 13% and nearly $160 billion in market value

Ron Baron, Tesla’s majority shareholder and billionaire investor, believes Tesla’s revenue will reach $1 trillion in 10 years, according tomedia reports.

Barron’s eponymous investment company holds nearly 1.63 million Shares of Tesla. He said Tesla’s stock was not for sale, saying it was just the beginning.

In an interview Monday, Mr. Rawlinson, CEO of Lucid Motors, Tesla’s rival U.S. electric car start-up, said it was widely believed that Tesla was still in the lead in terms of electric vehicle technology. Moreover, the gap between them and their competitors is widening, not narrowing.

The praise is in line with recent comments by Herbert Diess, the chief executive of Volkswagen, the world’s largest carmaker. On January 22nd Tesla surpassed Volkswagen by market capitalisation. Less than two weeks later, at Monday’s close, Tesla had a market capitalisation of $140.6 billion, about $50 billion more than Volkswagen.

Last month, Volkswagen CEO David Des told company executives at an internal meeting that “cars will be the most important mobile device.” If we see this, we can understand why Tesla is so valuable in the eyes of analysts. In addition, Des added, Volkswagen is not considered a technology company.

In fact, Rawlinson was the chief engineer of Model S before joining Lucid Motors in 2013. But he hasn’t always been optimistic about Tesla, and has even downplayed the products of his former employer.

But soon after, Musk built an overwhelming lead in the fledgling U.S. electric car market. In Europe, the Model 3 has also become one of the best-selling cars in Europe. In China, Tesla built its first overseas plant in just over a year and began delivering locally produced cars last month.

Tesla’s share price has risen nearly 220 percent in the past six months, including an increase of about 86.5 percent this year. The company’s market capitalisation is now more than $140bn, nearly three times that of General Motors but below Toyota Motor’s $227bn.

Investors shorting Tesla’s stock have lost more than $8 billion since the start of the year, according to S3 Partners, including nearly $2.5 billion in Monday’s surge.