In the automotive industry, traditionalists like to refer to the Big Three -- the torpid automotive giants of Michigan. The big three are Ford, General Motors, and Fiat-Chrysler. Of these Big Three, Chrysler is the baby, being founded in 1925. The term "Big Three" is used in other countries as well, to refer to whichever the three largest automakers based in the country. Even though Tesla is seldom grouped in with this bunch, Tesla's market cap is now higher than any combination of two of the Big Three.
As of today's market close, Tesla ($TSLA) stock traded at $469.06 per share, up 3.88% from the day's open; as compared to the S&P 500, which weighed in at $3237.18, up 0.28% from the morning's open.
Tesla's stock absolutely tore through the last quarter of 2019, nearly doubling. More recently, headlines have come back-to-back, with Tesla surpassing guidance on 2019 delivery numbers, a made-in-China Model 3 event, as well as the recent Model Y Launch today in Shanghai. Moreover, countless analysts have been hiking their price targets for Tesla. Most recently, Argus Research, a prominent market research firm, changed its price target to $556 from $396, representing an increase of 40%.
The stock price bolsters have allowed Tesla stock to soar past $400 per share, with the stock closing today just shy of $470 per share. Tesla's market cap (the estimated value of the company, based on total shares in circulation multiplied by the price per share) is now almost $86 billion dollars.
For perspective, here are graphs showing the market caps over time for Ford, General Motors, and Fiat-Chrysler.
And finally, Tesla:
Pay attention to the scale on these graphs. What has been a rocky few years for the Big Three has proven to be only the beginning for Tesla.
Cover image used courtesy of Reuters (Thompson Corporation)
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This article is for informational purposes only. You should not construe any such information or other material as an investment, financial, or other advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, or offer by Christopher Larson, Tesmanian, or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.
Christopher Larson is not a shareholder in Tesla, Inc., however currently (at the time of this article's publishing) holds options or securities in Tesla Inc. or its affiliates.
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