Tesla's Stock Keeps Rising as Its Valuation Surpasses $1.3 Trillion

Tesla Inc.’s stock has been on an extraordinary upswing over the past month, achieving a record close for the first time in three years. While the company is best known for its electric vehicles, the recent surge highlights broader factors driving its growth.

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A Record-Setting Streak

On Wednesday, Tesla’s stock soared to $424.77, marking a 20.9% gain over a six-day rally. This performance pushed the stock well past its previous record close of $409.97, set on November 4, 2021. However, in Thursday’s premarket session, the stock saw a slight dip of 1%.

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The six-day winning streak culminated in a 5.9% surge on Wednesday following news that General Motors Co. had decided to shut down its robotaxi business. This development further solidified Tesla’s dominant position in autonomous driving technology, which has become a cornerstone of the company’s long-term strategy.

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According to Wedbush analysts, Tesla’s focus on autonomous driving, particularly through its Cybercab robotaxi business, is expected to generate $1 trillion in value. This projection accounts for nearly half of Tesla’s anticipated total valuation by the end of 2025.

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Tesla’s market capitalization hit a record $1.36 trillion at the close of trading on Wednesday, making it the seventh most valuable company in the United States. Over the six-day rally, Tesla added $235.46 billion to its market cap—an increase greater than the combined valuations of General Motors, Ford Motor Co., and Stellantis N.V., which together were worth $139.6 billion as of Wednesday’s close.

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Tesla’s recent stock performance has significantly boosted the wealth of its CEO, Elon Musk. Based on his ownership of approximately 715 million Tesla shares, Musk’s net worth grew by $52.45 billion during the six-day rally, further solidifying his position as the world’s richest person.

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As of Wednesday, Musk’s total net worth reached $447 billion, according to the Bloomberg Billionaires Index. This puts him far ahead of Amazon founder Jeff Bezos, whose net worth stands at $249 billion.

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Tesla’s stock has skyrocketed 68.9% since November 5, driven in part by Musk’s strategic bet on Donald Trump’s presidential election victory. This rally has added a staggering $556.4 billion to Tesla’s market cap, while Musk’s personal wealth has grown by $123.9 billion during this period.

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To put this gain into perspective, the increase in Musk’s net worth surpasses the total wealth of Nvidia Corp. CEO Jensen Huang, whose fortune currently stands at $122 billion.

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Tesla’s recent rally reflects the company’s unique position in the electric vehicle and autonomous driving sectors. The shutdown of GM’s robotaxi operations not only underscores the challenges faced by competitors but also highlights Tesla’s ability to capitalize on its technological edge.

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The company’s ambitious plans for autonomous driving, combined with its dominance in the EV market, suggest that Tesla is well-positioned for continued growth. However, the broader implications of its valuation and market influence extend beyond the automotive industry, as the company’s success shapes investor sentiment across sectors.

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Tesla’s stock rally and record market cap are a testament to the company’s innovation and strategic focus on autonomous driving. With Elon Musk’s wealth reaching unprecedented levels and the company’s valuation surpassing many of its competitors combined, Tesla continues to redefine expectations for what a technology-driven automaker can achieve.

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