(Bloomberg) – The Market Value of Tesla Inc. has retail behemoth Walmart Inc. passed after a staggering increase in the shares of the electric car manufacturer over the past five months.
The stock, which hit a low of about $ 350 in March, has since quintupled and hovered around $ 2000 on Thursday, more than 10 times the level it currently traded last year. Tesla shares closed 6.6% at $ 2,001.83 in New York, on a very low note. The stock has closed at records on four of the past five trading days.
The relentless rally prompted Tesla to announce plans to split the share to make it more accessible to individual holders, a move that could increase demand for the shares. The stock will begin trading on a five-for-one split-adjusted basis on August 31st. Each record holder by closing the company on Friday, August 21st will receive four additional shares of common stock for each one they currently own.
Tesla’s valuation is currently around $ 373.1 billion, while Walmart’s hover over $ 369.8 billion, according to Bloomberg data.
The company’s market capitalization is “much more discounted than cars,” Morgan Stanley analyst Adam Jonas wrote in a note to clients, adding that Tesla’s ability to attract capital and talent increases with its significantly higher valuation. “Tesla’s performance is seen by some as capturing all the air in the room with respect to the prospect of competing initiatives for electric cars, especially among legacy players,” the analyst said.
(Updates share motion in header and second paragraph, updates rating in fourth, adds Morgan Stanley comments in fifth)
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