Tesla’s never-ending stock rally saw the electric automaker’s market cap surpass that of Facebook on Thursday.
The electric automaker, whose market cap sat just shy of $770 billion in early afternoon trading, leapfrogged Facebook, which was sitting at $764 billion.
Shares of Tesla climbed more than 7 percent Thursday, and are already up more than 10 percent in 2021, continuing a 2020 rally that saw the Elon Musk-led company’s stock surge nearly 475 percent.
The rally launched Musk past Jeff Bezos to make him the richest man on earth.
Thursday’s rally was fueled in part by a public mea culpa from RBC Capital Markets, which reversed its long-held bear opinion on the stock.
“There is no graceful way to put this other than to say we got TSLA’s stock completely wrong,” RBC’s analysts said in a research note. “But in the spirit of New Year’s resolutions and in light of our recent EV forecast through 2050 report, we re-evaluate TSLA’s place in the industry, growth opportunity and inexpensive access to capital.”
The analysts wrote that their “biggest miss” in previous Tesla evaluations was underestimating how the company “can take advantage of its stock price to raise capital inexpensively and fund capacity outlays and growth.”
Analysts expect Tesla to report $1.2 billion in net profits for 2020 during its upcoming earnings report, a paltry sum compared to Facebook’s expected $27.1 billion.
Indeed, if Tesla reports a profit, it will be just its sixth consecutive profitable quarter. The automaker has relied on sale of regulatory credits to other carmakers to put it in the black, with the $1.2 billion it brought in last year representing a 7 percent chunk of its total revenue.
“What we’ve seen in recent months really is increased visibility regarding the long-term growth plan at Tesla, which is to increase their annual vehicle production by a factor of 40,” CFRA Research analyst Garrett Nelson told The Post.
Tesla stock was up 7.2 percent Thursday afternoon, at $810.20.
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