Shares of Tesla surged up to 6 percent in early trading Wednesday, compelling the automaker’s market capitalization over $100 billion for the first time .
The market value of Tesla reached as large as $104.5 billion, overtaking Volkswagen AG, which has a market capitalization of roughly $100 billion. )
Tesla’s soaring stock price has pushed its market capitalization into quite a few documents as of late. It is currently the highest-valued US automaker of all time, and its market capitalization has surpassed those of both Ford and GM combined.
Wednesday’s surge has become the latest leg of a rally which started in October, once the company posted a surprise return to profitability in the next quarter. The rally has been continued by strong fourth-quarter vehicle delivery amounts, in addition to optimism round the new Gigafactory in Shanghai. Shares have more than doubled since.
Tuesday’s rally was fueled with a brand new most-bullish Tesla analyst on Wall Street. Pierre Ferragu of New Street Research boosted his price target on the equity to $800, implying that the stock could gain another 57%.
Tesla hitting the 100 billion market worth is a significant landmark for CEO Elon Musk. It unlocks the initial tranche of his album cover bundle with Tesla and brings him closer than ever to a $346 million payout, if the purchase price stays elevated over a time period.
Tesla has obtained 31% year-to-date through Tuesday’s close.