Tesla set a new record, about to reach a market value on par with Facebook

Tesla shares soared yesterday, pushing the company’s market value closer to Facebook.

Tesla shares rose 4.8%, pushing the company’s market cap to $ 730 billion. Meanwhile, Facebook’s share price fell 2%, causing its market value to drop to nearly $ 756 billion.

Tesla shares are currently ranked 6th in the S&P 500 in terms of market capitalization. Apple is the largest with a market cap of $ 2.2 trillion, while Microsoft, Amazon and Alphabet all have market capitalizations of over $ 1 trillion.

Wednesday’s rally came as the Democrats moved closer to controlling the Senate – a move seen as a huge favor for electric car companies. On the other hand, the party has a tough stance on technology firms and the risk that companies like Facebook will face more new laws.

However, it is not until now that Tesla shares have flourished. In 2020 alone, the company’s shares have increased by more than 740%. At that level, Tesla’s “bear side” (who believes that Tesla shares will fall and choose to sell) of Tesla has lost more than $ 38 billion in the past 2020. In addition, S3 also gives a comparison example, short sellers of Apple shares only lost less than 7 billion USD last year.

Facebook shares rose 30% last year but are still down more than 12% from their peak in August.

In the S&P 500 ranking, Tesla currently surpasses Warren Buffett’s Berkshire Hathaway in terms of market value.

Tesla has always received good news lately. In 2020, they delivered 499,550 electric cars to customers, with record sales of 180,570 units in the fourth quarter. This total is 36% higher than in 2018. Meanwhile, Tesla’s car production for the year amounted to 509,737 units, so the number of cars that have not been delivered to customers is more than 10,000 units.

Although the electric car maker did not fulfill its goal of selling 500,000 units by 2020, it was still very successful after a year of turmoil due to the Covid-19 epidemic.

Elon Musk tweeted that he was “proud of the Tesla team that achieved this milestone.”

In an effort to boost sales as 2020 is about to end, Elon Musk announced on social media that all Tesla vehicles delivered by the last three days of the year will have access to the “self-driving” option. full “for three months. The feature costs the user $ 10,000 when buying normally.

Dan Levy, an analyst with Credit Suisse, said: “Tesla has met the expectations of investors, when they want to see growth, electrification and disruption. They have had a good year. But there are other trends in the market. Obviously, interest in short selling Tesla stock is enormous by 2020. By 2020, this trend has changed. ”