Tesla is the new king-of-the-hill, after a week giving chase to long-time industry leader General Motors, the Silicon Valley upstart wound up narrowly squeaking into the lead, a nearly $51 billion market capitalization running just ahead of GM’s as trading on the New York Stock Exchange closed Monday afternoon.
Tesla had seemed poised for more than a week to take the lead, having already nudged past Ford Motor Co. earlier in the month. But Monday brought the Wall Street equivalent of a close horse race, GM and Tesla trading the lead almost by the hour. Finally, as the bell range, the EV maker had a closing stock price of $312.39, a $9.85 gain for the day, leaving it valued at $50.95 billion, while GM closed up $0.26 a share, at $33.97, with a market cap of $50.89 billion.
The surge in Tesla’s market performance comes at a critical time for the Silicon Valley automaker, which little more than a month ago had warned its finances were “on the edge” as it continued its costly investment in the launch of the new Model 3. The midsize electric vehicle, Tesla’s first priced by the mainstream, is set to go into production in July.