Tesla (NASDAQ: TSLA) overtook Boeing’s (NYSE: BA) market cap on Wednesday, March 11, 2020. This makes Tesla the highest-valued industrial company and automaker operating in the United States.
According to Market Insider, Tesla shares rallied 260% from October 2019 to February 19, 2020. Due to COVID-19, the stock market in the US hasn’t been in the best of shape. Somehow, Tesla is mustering through this time.
Roughly a year ago, Boeing was believed to be a company Tesla would never beat, specifically in terms of raw market cap. The aerospace company was worth about $200 billion more in market cap than Tesla a year ago. But yesterday, Boeing’s stock price dropped, and its valuation decreased by 15%, resulting in a $110 billion market value.
As of this writing, Boeing’s market cap is $109.76 billion, while Tesla’s market cap is $116.95 billion. It seems that the gap between the two has slightly widened since Wednesday’s market.
Recently Boeing’s fortunes have not been favorable. The aerospace company’s 737 Max aircraft experienced high-profile failures, which led to fatalities earlier this year. Boeing had suspended production of its 737 Max due to the deadly crashes.
Boeing has also been also affected by the global COVID-19 outbreak, which was recently labeled a pandemic by the World Health Organization. According to Bloomberg, the 737 Max was grounded because of the worldwide spread of COVID-19 and its effect on international travel.
Yesterday, Boeing shared that more orders for its 737 Max jetliner were canceled in February. The aerospace company has stopped hiring new personnel temporarily and taken other measures to save cash while COVID-19 continues to affect the air travel industry.
Meanwhile, Tesla has continued to manufacture and deliver its vehicles. The EV automaker’s Giga Shanghai resumed operations in February, and delivery centers followed suit weeks later. Tesla China has taken all the precautions possible to keep its customers safe to prevent the spread of COVID-19.
In America, Tesla has been preparing for Model Y deliveries for the past couple of weeks. A stream of Model Y delivery news has been steadily flowing since about the middle of February. Just recently, one Model Y reservation holder received his official delivery date, which revealed that Tesla could start delivering its affordable crossover by the end of this week.
Featured Image Credit: (From left to right) Wikimedia Commons CC BY-SA 2.0 and Elon Musk/Twitter
About the Author
Claribelle Deveza
Longtime writer and news/book editor. Writing about Tesla allows me to contribute something good to the world, while doing something I love.
