Tesla Inc. stock market tear made it one of the most valuable companies in the United States. But in some key ways, the electric car manufacturer is very different from other companies.
Tesla shares have risen more than 300 percent in the past year, raising the company’s market capitalization to more than $ 800 billion before retiring. The company’s rating since Thursday has been higher than the next seven major combined car manufacturers, placing the company side by side with market giants: Apple Inc., Microsoft Corp., Amazon.com Inc., Google parent Alphabet Inc. and Facebook Inc.
Here’s how Tesla got here and how it compares the bow to other S&P 500 companies:
It became extremely valuable, fast
In 244 days, the time in which Tesla’s market value rose from $ 100 billion to $ 800 billion significantly exceeded his colleagues. The 17-year-old benefited greatly from investors who accepted CEO Elon Musk’s view of electric vehicles and his notion that Tesla is not just a carmaker, but a technology company. Optimism about a transition to electric vehicles has fueled record gains in the actions of electric vehicle and battery manufacturers over the past year.
The shares of the Federal Reserve have helped push more investors into major stocks and indices. The central bank cut interest rates and bought billions of dollars in bonds, sending long-term Treasury yields close to zero, while yields on other fixed-income securities recovered to pre-pandemic levels. With such low bond yields, investors tend to focus on riskier assets, such as equities.