Elon Musk and Tesla continue to expand their accomplishments and the increasing stock price shows no sign of slowing down.
Tesla stock is up ~10% today, ~27% in the last month, and ~41% year-to-date. Based on the price move today, Tesla has joined an exclusive group of the world’s most valuable companies, “Megacaps”. Tesla is now the fifth largest company in the US by market capitalization, with the other trillion dollar companies being Alphabet, Amazon, Apple, and Microsoft.
Tesla is benefitting greatly from the accelerating transformation of the automotive industry towards mass adoption of electric vehicles. The company is in the news for all the right reasons on multiple fronts, and recent headlines have pushed the stock even higher.
Hertz, the car rental company, has placed an order for 100,000 Tesla Model 3 Sedans for locations in the US and Europe, as part of their electrification plan to overhaul their rental fleet. This is big news, as the order marks the single largest purchase ever in the EV space and should count for ~$4 billion of revenue for Tesla. If other rental companies follow suit, this could become a lucrative B2B income stream to complement their retail revenues.
Top-selling car in the EU
Tesla’s Model 3 sedan was the top-selling car in Europe last month, a significant milestone as it was the first time that an EV took the #1 position. In addition, it was also the first time that a non-European manufacturer sold the most. More and more governments in Europe are encouraging industries and consumers to become more sustainable and we expect this push to continue and further incentivize EV sales for Tesla.
Tesla has also become a reliable company in terms of their financial results. There were strong Q3 results released last week with revenues and net profits growing at strong rates both quarter-on-quarter and year-on-year. This positive momentum is also echoed by many market participants, as 72% of Wall Street analysts surveyed by Bloomberg currently have a “Buy” or “Hold” position on the stock, despite the all-time highs of the share price.
Overall, Elon Musk and Tesla are demonstrating that they are reaping the rewards of their first mover advantage and pioneer status in the EV space in recent years. Popularity continues to grow across the consumer space and the investor community, and the financial results and positive newsflow are also shifting up to the next gear.