Tesla (NASDAQ: TSLA) has added another feather in its cap today as the automaker’s valuation soared past $800 billion. Momentum from Thursday’s nearly 8% boost in stock price continued in after-hours trading, which set the stage for Tesla to continue its meteoric surge toward the elusive $1 trillion valuation barrier.
At the time of writing, TSLA shares were trading at $861.05, up over 5.5% in the first half-hour of trading on Friday. Thursday held several big events for the company’s stock as it overtook Facebook for the sixth most valuable company in the world, and CEO Elon Musk became the World’s Richest Person.
As the stock price continues to surge, Tesla investors continue to see the fruits of the faith pay off. The stock has eclipsed 700% in gains over the past year, trading at as little as $86.05 on Wall Street’s first day of 2020.
Fed by continuous surges in demand in the United States, Europe, and China, Tesla’s focus has been to figure out production bottlenecks, as well as improve the efficiency and cost of its battery cells to create a more affordable electric vehicle. Despite a Tesla’s cost, which is slightly more expensive than a gas-powered car, it is not stopping consumers from going electric. The Model 3, which starts at $37,990, was the most popular EV in the world last year, dominating sales figures in the U.S. and China.
The automaker has now been working on solving the puzzle of demand in Europe, where EVs are becoming more popular than gas cars. In December, the Model 3 outsold every vehicle in the United Kingdom. Even some of the year’s most popular gas cars, like the Ford Fiesta and the Volkswagen Golf, were not able to keep up with the all-electric sedan from Tesla.
At the $854.00 price per share, Tesla’s valuation sits at around $809 billion, moving it closer to the elusive $1 trillion market cap. Currently, five companies in the world have a valuation that is above the $1 trillion threshold: Apple ($2.215 T), Saudi Aramco ($2.046 T), Microsoft ($1.657 T), Amazon ($1.590 T), and Google parent company Alphabet ($1.203 T), according to CompaniesMarketCap.com.
Tesla’s rise in valuation is more than impressive considering where it was at this point just fifteen months ago. In October 2019, Tesla had just hit a $53 billion valuation, overtaking GM as the most valuable car company in the world. However, Tesla is over 15 times more valuable now than it was at that point. Incredibly, the stock continues to climb based on the company’s influx of advancements, coupled with a consecutive profitable quarter streak of five.
Disclaimer: Joey Klender is a TSLA Shareholder.