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(Reuters) – Tesla shares hit an all-time high in intense trading on Thursday, with the electric carmaker’s market value surpassing Facebook’s for the first time.
Shares of the Elon Musk-led company jumped nearly 8% to close the session at $ 816, placing its market cap at $ 774 billion and making it the fifth most valuable company on Wall Street, just behind Alphabet, Google’s parent company, and ahead of Facebook.
Facebook’s market value was $ 765 billion after its shares rose about 2%, according to data from Refinitiv.
(GRAPHIC: Tesla’s stock market value surpasses Facebook -)
More than $ 39 billion of Tesla shares were bought and sold during the session, a record for Tesla and more than the following three most-traded companies combined, namely Apple, Alibaba Group Holding and Amazon.com.
(GRAPHIC: Tesla dominates Wall Street -)
Tesla, up more than 700% in the past 12 months, has become by far the most valuable automaker in the world, despite producing only a fraction of its rivals such as Toyota Motor, Volkswagen and General. Motors.
Musk has passed Amazon’s Jeff Bezos to become the richest person in the world, Bloomberg News reported Thursday.
Tesla’s latest rally came after RBC upgraded its stock rating to “perform by sector” after “underperform.”
RBC analyst Joseph Spak said in his research note that he previously underestimated Tesla’s ability to use soaring stock prices to raise capital to fund the company’s expansion. .
“We took a fresh look at the growth opportunity, got it wrong about TSLA’s positioning and valuation and conclude that the share price itself is likely to be somewhat self-fulfilling. for TSLA’s growth and strategy, ”writes Spak.
Analysts expect Tesla to report an average of $ 1.2 billion in net profits for 2020, compared to $ 5.8 billion in expected GM net profits and $ 27.1 billion in expected net profits from Facebook , according to Refinitiv.
Reporting by Noel Randewich, editing by Nick Zieminski and Dan Grebler
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