Tesla, Elon Musk’s start-up green car company that currently only sells one vehicle, the Model S, has reached market capitalization of $20 billion – making it more valuable than Italian automaker Fiat, among others.
Tesla is on pace to sell about 20,000 Model S electric cars, which amounts to roughly 1 percent of Fiat’s total, according to Green Car Reports.
Tesla’s market capitalization of $20 billion was noted this week by Bloomberg’s Alan Ohnsman and is in fact higher than that of Mazda, Mitsubishi, Suzuki and Isuzu.
Buoyed by top safety ratings, media coverage and Musk’s charisma, the Model S has helped Tesla stock skyrocket.
“It has risen from under $40/share to $166/ share, where it currently stands, up nearly 400% this year,” writes investor Christopher Drose on investor site Seeking Alpha.
He also warns that investor hype is partially the reason.
“This advance has caused many critics to proclaim that Tesla is way overvalued and is due for a crash,” Drose, who holds Tesla stock, writes.
Photo Credit: Tesla Motors