Not exactly chump change.
Tesla defied many analysts' expectations for the first quarter of 2021 when it reported more new vehicle deliveries than predicted. Over 184,000 electric cars, consisting mainly of the Tesla Model 3 and Model Y, reached customers in the first three months of the year, surpassing the 178,000-unit prediction. In total, Tesla built 180,338 vehicles. Not only is Tesla firmly holding on to its title and status as the world's most valuable automaker, but it's now increased that value by $50 billion.
Reuters reports Tesla stock jumped by almost 8 percent in pre-market trading this past Monday. It's now on track to hit its highest price in over a month. A few brokerage firms raised their Tesla stock prices, with one increasing from $50 to $1,000.
Many analysts still believe Tesla's $700 stock price is overvalued (one analyst believes it's worth only $150) but they can't ignore how well the automaker is performing, especially during the pandemic. Most automakers are still suffering through a semiconductor chip shortage which has halted production in several factories across the country and overseas. Tesla is weathering the storm just fine, at least for now. At the time of this writing, Tesla is worth $660 billion.
To put that into some perspective, this valuation is close to the total size of the US and European automotive markets. Wall Street is especially bullish these days for EV carmakers. Nio and Xpeng, both Chinese-owned brands publicly traded in the US, are up by around 3 percent.
Although Tesla accounts for only a small slice of the total US automotive sales pie, rival legacy brands like General Motors, Volkswagen, Toyota, and Ford are closely monitoring the California-based company's stock not because they want to invest in a competitor, but due to their own EV futures.
The market reacted favorably when GM announced a few months ago it'll be battery-electric-only by 2035, and America's largest automaker wants to retain that goodwill for the long haul. Tesla will continue to be the EV market leader for the time being, but there are those who aim to topple that status.