Overnight Tesla stock surged to a high of $2,166 per share and closed at a very tidy $2,153.17 per share, a growth of 6.42%. This correlates to a Market Cap of US$401.27 Billion, quite an amazing milestone for the company.
To add some perspective to that value, here’s a comparison table.
Combined these 5 automakers account for just $324.12 Billion, you could even throw in Nikola at 14.71B and have a cool 61.17 Billion left over.
Outside of the Auto space, there’s some additional stocks we can take a look at that provide further perspective in the company’s size.
So Tesla are dominating the automotive space and are even larger than chip makers Nvidia and Intel, but still have a long way to go to catch the internet giants Microsoft, Apple and Amazon.
Of course, Tesla’s Net Worth isn’t important in respect them acquiring other automakers, as there’d be little Tesla could gain from legacy auto. At first glance it may seem like Tesla could acquire a smaller automaker and leverage their factories, however what Tesla is doing with modern factories differs considerably to legacy auto.
From Shanghai, to Berlin, to Texas, Tesla are making factory construction and expansion and key capability and while expensive, starting from the ground up means you’re not trying to retrofit a new method of production into an old model. Similar to the approach of building an EV from the ground up, verses throwing batteries on to an existing ICE platfrom, externally they may look the same, but underneath, they are worlds appart.
The most important to their ability to raise more capital, should they chose to accelerate their expansion even faster.
I posted in detail last week around the reasons behind the rise in stock price and valuation and if you haven’t had a chance to read it, please go take a look – Tesla share price races from $220 to $2,000 in 1 year, closing in on $400 Bil market cap.