Originally published on the EV Annex blog.
An energy paradigm shift is underway. According to Bloomberg, “Tesla Inc.’s market value has surpassed Exxon Mobil Corp.’s in a sign that investors are increasingly betting on a global energy transition away from fossil fuels.” Bloomberg touted the turning point as a “symbolic energy shift” that could signify a seismic transformation taking place in the sector.
It’s reported that, “Elon Musk’s Tesla, now at $201 billion in market capitalization, is surging on the billionaire’s optimism that his company can avoid a second-quarter loss. Exxon, which dropped to $185 billion, is reeling from the worst crude-price crash in history. The largest oil company in the Western Hemisphere is preparing to cut some of its U.S. workforce.”
The stock closed yesterday at an all-time record, marking a milestone for Elon Musk’s electric car company. According to Marketwatch, “Tesla Inc. shares ended at a record $1,079.81 on Tuesday, sending the Silicon Valley car maker’s market cap above $200 billion for the first time.”
|Above: Tesla overtakes Exxon Mobil in market value (Source:Bloomberg)|
And there’s possible growth ahead for Tesla if the company posts a profit for the fourth consecutive quarter. “Inclusion in the S&P 500 might push shares higher into, and after, the second quarter Tesla delivery report, due in coming days. S&P 500 index funds might start to prepare for index inclusion if deliveries beat estimates,” according to Barron’s.
This week marks Tesla’s 10-year anniversary since its IPO. Since its debut a decade ago, “Tesla’s shares are priced [more than] $1,050—that’s well over a 4,000% return since the close of its first day as a public company. Even during this ongoing coronavirus pandemic, shares are up more than 140% this year. Along with Netflix, that type of stock performance puts Tesla in rare company, as it has outperformed other tech giants like Amazon and Apple,” according to National Interest.
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