Voom, voom, voom.
A week after overtaking Ford in market value, Tesla, the upstart electric carmaker has on Monday dethroned General Motors as the most valuable US auto company.
Shares of Tesla jumped as much as 3.5 per cent in early morning trade, giving it a market capitalisation of $51bn and helping it briefly surpass GM’s $50.7bn market value.
Tesla has been on a blistering run this year, with the stock up more than 46 per cent since the start of January as it continues to report strong sales growth. It delivered over 25,000 vehicles in the first quarter, up 69 per cent from a year ago.
By contrast, GM and Ford are down 2.3 per cent and 6.6 per cent for the year to date. Sentiment for shares in traditional carmakers has been hit by lacklustre US vehicles sales this year, stoking investors’ worries that the domestic auto industry has hit a plateau following a record 2016.
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