SAN FRANCISCO—Tesla Inc. on Monday briefly became the most valuable U.S. car maker, reaching a market capitalization of as much as $51.105 billion, higher than General Motors’s.
Helped by an analyst’s recommendation, the luxury electric car maker’s stock rose as much as 3.15 percent to a new record high of $313.73, and its market value was at one point larger than GM’s, which was $51.095 billion, before it dropped behind again.
Over the past month, Tesla has surged 35 percent as investors bet that it and Chief Executive Elon Musk will revolutionize the automobile and energy industries.
Tesla’s market capitalization is now equivalent to $102,000 for every car it plans to make in 2018, or $667,000 per car sold last year. By comparison, GM’s market capitalization is equivalent to $5,000 per car it sold in 2016.
Proponents believe Tesla will become a carbon-free energy and transportation heavyweight and they argue its valuation is reasonable based on long-term expectations for Tesla’s growth.
