For the first time the most valued carmaker isn’t based out of Detroit, but out of Silicone Valley, California.
In a significant milestone for Tesla, the luxury auto manufacturer has edged out General Motors too become the most valuable car manufacturing company in the United States.
For the first time in the history of the United States, the most valued car manufacturing company is not based out of Detroit but out of Silicon Valley.
The development could be a component during discussions at the White House when Elon Musk, Mary Barra and other CEOs go to discuss tax reforms and other matters with President Donald Trump.
Helped by an analyst’s recommendation, Tesla shares surged by 3.26% to a record high of $312.39 on Monday thus bringing its market value to $50.887 billion thereby exceeding GM’s by around $1 million.
In the past months, Tesla’s shares have risen by 35% as investors opine that Musk has the gusto to revolutionize the automobile and energy industries.
Tesla’s market capitalization is now equivalent to $102,000 for every car it plans to make in 2018, or $667,000 for every car sold in 2016. In comparison, GM’s market capitalization is just $5,000 for every car it sold in 2016.
The Palo Alto, California-based company is all set to launch its mass-market sedan, the Model 3 in the second half of 2017. It is also ramping up its production facilities to meet a production target of 500,000 cars per year in 2018.