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Elon Musk's Tesla has become the first publicly listed U.S. carmaker to cross $100 billion in stock market.
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Despite of all the odds including his tweet of making the company private and security concerns, Tesla has hit a new record-breaking valuation.
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President Donald Trump has praised him on the new achievement and employees of Tesla company demand raise as the company's stock reaches a new milestone.
Elon Musk appears to have built a respected financial fortress around his electric vehicle company Tesla. On Tuesday, it became the first U.S. carmaker, that publicly sells shares, to be valued at over $100 billion that brings the CEO a step closer to a major payday.
Incident of reaching to this milestone comes within a month after Tesla’s stock crossed $420 apiece, the infamous price at which Mr. Musk had tweeted he would take the electric car maker private. Addressing this, Mr. Musk tweeted he had in August 2018, when its shares were trading in the mid-$330s, only to later give up under investor pressure and regulatory concerns.In one of the tweets, Elon Musk wrote, "Am considering taking Tesla private at $420. Funding secured." It is later on cleared that he saidonly to give up under investor pressure and regulatory concerns.
After reaching valuation of Tesla to $100 billion, the stock closed at $569.56 per share, giving the company a valuation of about $103 billion.
The event make Tesla the first publicly traded U.S. carmaker at this moment. Just before this month, the share price was $420 apiece.
The Wednesday surge carried Tesla past Volkswagen’s $99.4 billion valuation, replacing the German giant in the No. 2 spot worldwide behind Toyota, which is worth $231 billion. General Motors, meanwhile, is currently worth $49.9 billion and Ford is worth $36.3 billion. Current alone is more than General Motors and Ford combined and outrankspublicly traded U.S. carmakers.
The company has seen its stock more than double in the last three months, fueled by a rare quarterly profit in October, news of production ramp-up in its China factory and better-than-expected annual car deliveries.
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Safety Concerns of Tesla
In the mid of January, Tesla vehicles have been at the center of a petition to the U.S. National Highway Traffic Safety Administration (NHTSA)due to the sudden
. The petition consists over 127 consumer complaints, 110 crashes and 52 injuries and covers Tesla Model S, Model X, and Model 3. However,
.Tesla also came under fire safety concerns that involves advanced driver assistance systems, autopilot.In the coming days.
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Tesla has jumped despite all the odds and safety concernaccusations made on it and .Even though the debate captured headlines, it evidently had no impact on Tesla‘s stock price in the short term and proved nothing can derail the Tesla train.
President Trump praised Elon Musk saying he is genius and compared him with the legendary inventor Thomas Edison. In another news, Tesla sales employees are asking raise in their salary after company's recent stock boom.