Tesla shares hit the red and became the most expensive car company, managing to surpass Toyota, Disney and Coca Cola.
Elon Musk 's electric car business exceeds the value of almost every company in the S&P 500, including some iconic American industries .
On Wednesday afternoon, the company's shares rose 4%, breaking record and each share touched $1,134. At these prices, its market cap reaches almost $210 million.
This pushed Tesla to the top of the list of the most valuable companies in the world, above even Toyota. It also left behind the well-known soft drink company Coca Cola (KO), surpassing its market value, as well as Disney (DIS), Cisco (CSCO), Merck (MRK) and Exxon Mobil (XOM). The list also includes PayPal, which was created from the merger of another payments company, also founded by Elon Musk.
Its shares have risen sharply since the beginning of 2020, as investors are now more confident about the future of electric cars.
Toyota, of course, remains a much larger company, selling about 30 times as many cars last year , with profits 10 times higher. Specifically, the Japanese company sold 10.46 million cars through March and recorded revenue of 30.2 trillion yen in Japanese currency . Tesla's sales, on the other hand, were limited to 24.6 billion yen , selling only 367,200 vehicles last year.
There are currently only three companies in the S&P 500 that are worth more than Elon Musk's company. One of them is AT&T Inc., which owns CNN.
However, earnings are not consistent enough to secure it a spot in the S&P 500, but this might be a good start.
