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Tesla Inc.’s stock market tear made it one of America’s most valuable companies. But in some ways, the electric car maker is very different from other companies of its size.
Tesla shares soared more than 300% last year, bringing the company’s market cap to over $ 800 billion before falling. The company’s valuation on Thursday was higher than that of the seven largest automakers combined, placing the company side-by-side with market giants: Apple Inc., Microsoft Corp., Amazon.com Inc., the parent company of Google Alphabet. Inc. and Facebook Inc.
Here’s a look at how Tesla got here and how its arc stacks up against other companies in the S&P 500:
It got extremely valuable, fast
At 244 days, the time it took for Tesla’s market value to rise from $ 100 billion to $ 800 billion has far exceeded its peers. The 17-year-old has benefited greatly from investors embracing CEO Elon Musk’s view of electric vehicles and his notion that Tesla is not just an auto maker, but a tech company. Optimism about the transition to electric vehicles has fueled record gains in shares for electric vehicle and battery manufacturers over the past year.
Federal Reserve shares helped push more investors into stocks and major indexes. The central bank cut interest rates and bought billions of dollars in bonds, sending long-term treasury yields close to zero, while yields on other fixed income securities returned to pre-market levels. pandemic. With such low yields offered by bonds, investors tend to look to riskier assets such as stocks.
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