As trading wrapped up on Wall Street Tuesday, Silicon Valley automaker Tesla stopped just short of two major milestones: a market capitalization of $50 billion and bragging rights as America’s most value company by market capitalization.
Tesla shares have been on a tear this past week, despite continuing losses – and dire warnings by some key analysts. The bull run appears to be driven by strong first quarter sales and the revelation that Chinese financial powerhouse Tencent Holdings has taken a 5% stake in the company.
Tesla’s stock rise counters the weak reception traditional automakers, notably General Motors and Ford have gotten lately. Both have tumbled sharply since the beginning of the year, despite management efforts to make them more attractive to investors. (more…)