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Tesla Inc. has joined the trillion-dollar-valuation club as the member with the lowest revenue.
The electric vehicle maker’s shares have run past several milestones over the past couple of weeks amid a rush of positive news. That helped bolster sentiment among investors, who are betting on Tesla’s potential for rapid future growth as EVs become mainstream and eventually replace gas-driven cars. Their focus means Tesla’s market valuation touched a trillion dollars even before its revenue could reach the $50 billion mark.
This unique feat came as car-rental company Hertz Global Holdings Inc. placed an order for 100,000 Tesla cars, a move that signals EVs are here to stay and gives bulls confidence that Tesla’s sky-high valuation is sustainable, too.
“Wall Street is starting to believe the skyrocketing move with Tesla’s stock price is nowhere near over since Tesla has a massive lead in the EV space and improving growth potential as the U.S., European and Asian markets for electric cars grows,” Oanda analyst Edward Moya wrote in a note Oct. 25.
— With assistance from Thyagaraju Adinarayan.
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