Tesla TSLA just became the most valuable automaker in the world in terms of market capitalization. It beat out Japanese rival Toyota (TM) - Get Toyota Motor Corp. Sponsored ADR Report with a valuation of over $209 billion.
Tesla's stock has been on a wild tear, up 432% from a 52-week low set in August 2019 and up more than 5,500% from when the company first went public at the Nasdaq in June 2010. Ten years ago, its shares were priced at a mere $17.
Of course, the company has come a long way since then, with many landmark moments along the way.
In October 2011, Tesla unveiled the Model S, followed by a huge announcement of its autopilot function in October 2014. The Model X was delivered in September 2015 and the Model 3 in July 2017.
Notably, in November 2019, Tesla had an embarrassing unveiling when it attempted to show off the Cybertruck's "unbreakable" glass. However, the glass shattered when a steel ball was thrown at it. Nonetheless, Tesla's stock continued to rise and in January 2020, the Model Y was delivered.
In a monumental moment for the company, Tesla’s stock raced towards—and hit—the $1,000 mark on June 10, 2020. In January 2019, Tesla’s stock was just $212 a share, meaning it had a monumental increase of 371% in one year.
Tesla’s stock has been largely driven by investors' faith in the company’s dominant position in the electric vehicle industry.
In late May 2020, Morgan Stanley analyst Katy Huberty compared Tesla to Apple APPL.
"View Tesla in a way they viewed Apple 20 years ago: a company that thinks differently, that is incredibly innovative in a category that needs a spurt of innovation. That creates investor interest. If there’s a path to profitability and reason to believe scale will continue to increase, then tech investors tend to not care as much about valuation and/or are will to look multiple years into the future when scale and profitability will support current valuation," Huberty wrote in a note to clients.