Electric car maker Tesla’s shares have been on a roll. Already gaining 600 per cent this year through Friday, its share price rally on the back of news that the company would join the S&P 500 has pushed it to become the sixth-largest company in the US, according to a report by Fox Business. Tesla’s market value hit the $555.24 mark to surpass Warren Buffett’s Berkshire Hathaway this week. Elon Musk’s Tesla now trails technology companies Apple followed by Microsoft, Amazon, Alphabet, and Facebook. Apple is currently valued at $1.98 trillion while Facebook has a market cap of $791.2 billion. Tesla had gained $168 billion in market value since S&P Dow Jones Indices said on November 16 that the EV company would be part of the benchmark S&P 500 on December 21.
Importantly, its market cap is already bigger than auto majors’ including Toyota ($23.66 billion), Ford ($35.52 billion), and General Motors ($64.49 billion) combined. Tesla had reported in October its fifth consecutive quarterly profit with $331 million profit in the third quarter versus analyst expectations of $394 million, as per Refinitiv data cited by CNBC. The revenue stood at $8.77 billion. The company had raised over $7 billion in the nine months preceding October.
Musk in a tweet in October had said that the EV company will certainly enter the Indian market next year. “Next year for sure,” Musk had tweeted on October 2, 2020. Currently, China is the only Asian market where Tesla retails. India’s richest state Maharashtra and IT hub Karnataka have already invited the company to set-up a shop.
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Earlier this month, road transport minister Nitin Gadkari had said that the government is working towards making India a global automobile manufacturing hub in the next five years and that the country has the potential to become the largest Electric Vehicle (EV) market globally. The minister also sought price cut for EVs by auto industry to boost sales. As per Statista, Tesla’s deliveries reached 367,000 — 368,000 units in 2019 globally, making it the leading producer of plug-in EVs. Concurrently, its Model 3 is the world’s best-selling all-electric vehicle model accounting for more than 80 percent of Tesla’s vehicle deliveries by model during Q4 2019.
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