It’s been an eventful past couple of days for electric-car company, Tesla, and its owner Elon Musk. The giant automobile company’s stocks, buoyed by reports of the United States’ policy of green energy, rallied over 7%, peaking at $834 billion. Facebook’s market capitalization was pegged at $762 billion.
Rapidly Rising Shares
For the first time since the formation of the company, Tesla has surpassed the social media giant Facebook by market capitalization at the recently concluded trading session.
The company’s stocks rallied more than 7%, placing Tesla as the fifth-biggest company in the stock market index. At present, Tesla ranks behind Apple, Microsoft, Amazon and Alphabet.
Meanwhile, Tesla’s success is reflected in the personal wealth of its Chief Executive, Elon Musk. Musk owns about 20 per cent of the company’s shares, making him worth a tidy $209 billion. His holdings at Tesla are estimated at $150 billion.
Massive Bull Run
The rapid hike in Tesla’s shares is attributed to expected policy reforms by the US Senate having radical effects on the automobile scene. The US is expected to favor a pro-green energy policy calculated to wean the States off combustible engines.
This was further emphasized by reports that revealed that the Democrats will gain control of the US Senate after runoff elections were held. The Democrats and President-elect Joe Biden in particular have long expressed their desire to implement a pro-environment policy which would mean a shift in focus from fossil fuels to alternative renewable energy.
This week alone, Tesla’s shares gained a massive 25%, surpassing the S&P 500 and Dow Jones Industrial Average by a comfortable margin. Both rallied by 1.8% and 1.6% respectively, for the week. Since its initial public offering in 2010, Tesla has gained over 24,000%. The company also gained a 5-for-1 stock split in 2020.