The largest car company on the planet officially belongs to Tesla: Market capitalization is bigger than Toyota, Disney and Coca Cola

The electric car maker Tesla has surpassed the value of many companies in the S&P 500 including some veteran names.

Specifically, Tesla shares rose 4% in the session on Wednesday to a new high record above 1120 USD / 1 share. At that price, Tesla’s market capitalization has now reached 210 billion USD.

This makes Tesla the most valuable car company on the planet, ahead of Toyota. Tesla also surpassed the capitalization of Coca Cola, Disney, Cosco and Exxon Mobile.

Currently only 19 companies in the S&P 500 are worth more than Tesla. Its capitalization is now more than Paypal – a company once co-founded by Elon Musk.

Tesla is currently unable to meet the conditions of continuous profitability to join the S&P 500. However, they seem to be about to reach this milestone.

The optimism about electric vehicles has also helped stock a rising rival of Tesla, Nikola, since its IPO in June through a merger with the listed company. Nikola is currently worth nearly $ 25 billion, bigger than Ford.

The achievement of becoming the most valuable car manufacturer on the planet comes in time for Tesla’s 10th anniversary of the IPO. At the time of the IPO from 10 years ago, their share price was 17 USD / 1 share, higher than the pre-IPO expectation of only 14-16 USD / 1 share.

Through the IPO, Tesla raised $ 226 million, the share price sublimated in the next session, up 41% to close the session at $ 23.89 per share. Compared to the present time, their stock has increased by 4.125% compared to the time of IPO.

Of course, Tesla shares have experienced many ups and downs, such as a 30% drop in a month after August 7, 2018, CEO Elon Musk tweeted that he had a “capital guarantee” to put The company becomes a private company. Shortly thereafter, the US Securities and Exchange Commission accused Musk of misleading the public and both Musk and Tesla personally paid a fine of $ 20 million.

However, the company’s stock has rebounded strongly since the beginning of 2020 when Tesla put its factory into operation in Shanghai and began manufacturing Model Y cars at its US plant. Investors believed in the company’s commitment to deliver the Semi electric pickup, the Cybertruck truck line and improve the self-driving car technology. Although the Covid-19 pandemic caused the California plant to close for weeks, Tesla shares were up 140% this year.

Since the IPO, Tesla has never achieved a profitable year. So far, the company has only reported 7 profitable quarters, the first is the first quarter of 2013. Currently, they have had 3 consecutive quarters of profit.

Tesla stock surged also helped Elon Musk achieve the KPI set before and received a huge bonus of up to $ 750 million.