Tesla became the most valuable automobile company in American history

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Source: Forbes
By Hayley C. cuccinello
Original title: Tesla became the most valuable automobile company in the history of the United States, and Musk’s wealth rose another $2.1 billion
Tesla CEO and founder musk is a geek. Last Tuesday, Elon Musk attended a ceremony at Tesla’s Shanghai plant in China. Meanwhile, he took off his coat and danced enthusiastically to the songs of his girlfriend Grimes. The reason why Musk’s interest is so high is that it’s worth billions of dollars.
Previously, Tesla announced delivery of 112000 vehicles in the fourth quarter, both a record and slightly exceeding analysts’ consensus expectations. The company also announced that its Shanghai plant, the company’s first fully produced plant outside the United States, has begun delivering cars to social owners. Subsequently, the company’s share price soared.
As of January 9, the company’s shares rose 13% in a week, and Musk’s fortune rose $2.1 billion to $28.8 billion. Musk, 49, is currently the 34th richest person in the world. He owns nearly 22% of Tesla, which accounts for about half of his wealth. Musk is also a shareholder in the unlisted company SpaceX, with an estimated equity value of $12.5 billion. The latter is engaged in aerospace business, and its reusable rocket is well known.
According to Dow Jones, Tesla’s market value reached $83 billion on Tuesday, breaking Ford’s record of $81 billion in 1999, making it the most valuable car company in the United States (excluding inflation). By Friday’s close, Tesla’s market value had grown to $85.8 billion, compared with $87 billion for GM and Ford.
Tesla’s share price has doubled since October, but it has also experienced setbacks. Tesla’s shares fell 6% in November after cybertruck’s announcement, and Musk’s wealth evaporated $768 million a day. Wall Street analysts remain divided on the company. Of the 36 analysts tracked by Bloomberg, 15 gave the company a “sell” rating, 11 a “hold” rating and 10 a “buy” rating.
Wedbush analyst Daniel Ives is confident in Tesla and highlights the growth potential of the Chinese market. “We believe Tesla has the ability to increase production, and the demand of the Chinese market in 2020 will be the main factor affecting the company’s share price,” Ives wrote in a research note
Ryan Brinkman, an analyst at JPMorgan, maintained a “sell” rating. Although he has improved his judgment on the company’s price target, he still points out that the delivery of more expensive model s and model x vehicles has declined by 30% year-on-year compared with model 3 vehicles. “We remain cautious about Tesla’s stock rating,” Brinkman wrote. This is because we see a high market value (the company is about to report a net loss for 10 consecutive years, but recently the market value has soared to $80 billion), investors expect a lot, and the execution risk is high. ”
Garrett Nelson, an analyst at CFRA, downgraded his rating from “hold” to “sell.”. “We believe that Tesla’s stock has soared since it hit a low of $177 in June last year, and now it seems that its value has been fully reflected, and the company’s share price does not reflect various recent risks,” Nelson wrote. Now, Tesla’s market value is about to exceed that of General Motors and Ford, but car sales are only 3% of the total. We believe that investors have high expectations for Tesla’s future growth, which also increases the risk of implementation. ”
For the past week, musk has been very busy. Girlfriend Grimes posted two pictures of her pregnancy on instagram. Musk has yet to officially admit that he is the father of the child. However, in response, he also released a photo of himself dancing with Grimes’ song oblivion. He replied happily, “haha spectrum AF”, with the expression of a baby. He also commented on Grimes’ tweet about pregnancy: “x is y.” If Tesla’s share price continues to rise, it could double again until Musk’s seventh child is born. By then, muskeben’s already vast wealth could add billions of dollars again.