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Updated on: Tuesday, October 26, 2021, 03:35 PM IST

Tesla becomes world's most valuable automaker after going past $1 tn m-cap; shares surge

Tesla Inc surpassed $1 trillion in market value on Monday after landing its biggest-ever order from rental car company Hertz./ Representational image |

Tesla Inc surpassed $1 trillion in market value on Monday after landing its biggest-ever order from rental car company Hertz./ Representational image |

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Tesla shares surged 14.9 percent to $1,045.02, making it the world's most valuable automaker according to Reuters calculations based on its latest filing.

Asheesh Chanda, Founder and CEO, Kristal, said: "With the $1 trillion valuation, Tesla is now more valuable than the other 9 biggest listed carmakers combined. While they have a way to go to justify such a high valuation, they have done well to turn cashflow positive over the last few quarters and reduce reliance on sales of emissions credits to boost the bottom line.

"Given the continuous sales expansion of Tesla, Indian investors can look into Tesla as a tool of diversification into global assets outside of India equities. EV is currently a big trend and seems like it'll continue to be so going forward as well. Despite the high valuation of Tesla, which it has used to even higher P/E in the past as well, Indian investors can apply dollar-cost averaging to acquire the Tesla shares at good prices and hold for medium to long term. Tesla has been the category creator in the EV space. Hence Indian investors looking to gain exposure in the segment should consider Tesla as an investment option in their portfolio."

Tesla Inc surpassed $1 trillion in market value on Monday after landing its biggest-ever order from rental car company Hertz, a deal that reinforced the electric car leader's ambitions to top the entire auto industry in sales over the next decade, Reuters said.

Tesla hit a record high last week after Elon Musk’s company reported earnings that beat Wall Street estimates, wrapping up a ninth-straight quarter of profit as the 18-year-old electric-vehicle maker outperforms rivals battling a dearth of semiconductors crucial for production, according to Bloomberg.

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Published on: Tuesday, October 26, 2021, 11:36 AM IST
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