Tesla shares soar to new all-time high

Tesla shares soar to new all-time high

August 28, 2020 0 By autotimesnews

Ahead of the 1:5 split, Tesla Inc shares continued to skyrocket, setting another record on Aug. 27 and further increasing the distance between the Silicon Valley electric car maker and its traditional rivals in the auto industry.

Tesla shares soared to $ 2,290 in the middle of the day and then leveled off to $ 2,240, the highest price since the company went public in 2010 when it was valued at $ 17 a share. As a result, since the beginning of 2020, the shares of the American brand are up more than 420%, turning some retail investors into millionaires.

While other automakers are forced to invest billions of dollars to overhaul their internal combustion engines and build battery-powered vehicles, investors are confident that Tesla will be able to grow from a niche automaker to a global leader in green transportation.

Tesla became the world’s most valuable automaker by market capitalization when it overtook the previous leader in July, Toyota Motors Corp. The company now accounts for 41% of the total market capitalization of a group of 12 of the world’s largest automakers. However, Tesla accounts for only a small fraction of global car sales.

In 2019, Toyota and Volkswagen AG sold 10.46 million and 11 million vehicles, respectively. For comparison, Tesla delivered 367,200 vehicles during this period. Tesla executives say the company will deliver at least half a million vehicles by the end of 2020, which is less than 5% of Toyota and Volkswagen’s annual sales.