It’s the first time in the modern era, that the most valuable U.S. automaker is not based in Detroit.
Silicon Valley’s Tesla Inc surpassed General Motors on Monday to become the United States automaker with the largest market capitalization as the century-old car industry increases its dependence on software and advanced energy technology.
Assisted by an analyst’s suggestion, Tesla increased 3.26 percent to a record high of $312.39 on Monday. Its market value of $50.887 billion surpassed GM’s by about $1 million.
During the last month, the luxury electric automaker has risen 35 percent as investors bet that Musk will transform the auto and energy markets.
That compares to a decreasing share performance by GM over the last years that recently led billionaire investor David Einhorn to discuss splitting the stock into 2 classes to help increase its price.
Tesla’s market capitalization is now comparable to $102,000 for each car it prepares to develop in 2018, or $667,000 per vehicle sold in 2016. By comparison, GM’s market capitalization is comparable to $5,000 every car it sold in 2016.