Elon Musk, founder of SpaceX and managing director of Tesla Inc., is coming to the Axel Springer awards ceremony in Berlin on December 1, 2020.
Liesa Johannssen-Koppitz | Bloomberg | Getty Images
Electric vehicle maker Tesla outperformed Facebook by market cap after markets opened on Friday.
Tesla’s stock rose 5.5% at 9:03 a.m. ET to reach a market cap of $ 802.6 billion, while Facebook stock fell. Facebook now has a market cap of around $ 755.8 billion.
The jump makes Elon Musk’s auto company the fifth largest in the large-cap benchmark when you add up Alphabet’s share classes. Now only Apple, Microsoft, Amazon and Alphabet follow.
While the brand is largely symbolic, it means Tesla’s dramatic rise in just a short time. Tesla became the first publicly traded US automaker valued at $ 100 billion in January 2019. Just 10 months later, the company passed a market cap of $ 500 billion. The stock gained more than 700% in 2020.
The company joined the S&P 500 in December and ended a strong year of accomplishments. Tesla has had five profitable quarters in a row under Musk’s leadership. Tesla delivered 499,550 vehicles in the year and is currently building new factories in Austin, Texas and Brandenburg, Germany to increase production and sales volumes, among other things.
The Facebook share gained around 32% over the course of 2020.
Tesla shares rose this week after a very bullish comment by Morgan Stanley analyst Adam Jonas and news of a Democratic majority in the Senate following the Georgia runoff.
Among other things, President-elect Joe Biden is aiming to create 1 million new jobs in the domestic auto industry, expand the charging infrastructure for electric vehicles in the US, and expand solar and other renewable energies as part of his clean energy plan. It would supposedly prove easier for him to push these plans forward with a Democratic majority in the Senate. The Democrats sealed their Senate majority this week after the runoff elections in Georgia.
Thursday’s Tesla share price surge pushed Musk past Jeff Bezos, who has been the richest person since 2017 and is currently valued at around $ 184 billion. Musk launched around $ 27 billion in 2020 and was barely among the 50 richest people.
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