Elon Musk has become the largest billionaire gainer by net worth, beating his closest rival by a margin of over $4 billion.
Others are even comparing the stock to Bitcoin, citing the fact that both products have risen over 150% in the 12 months.
So far, Musk's wealth is up by $13.5 billion less than 40 days into 2020. Baron also said he sees Tesla's recent surge - ticker is up 394% since June - as "just the beginning" and that his firm, Baron Capital - which bought TSLA at an average cost of $219 a share - will not sell a single share.
Elon Musk is almost $14 billion richer in 2020.
In the course of the trading session on Wednesday, February 5, quotes Tesla on the NASDAQ fell by 17% to a level of 739 dollars per share. The iconic American automakers Ford ($154.7 billion) and General Motors ($130.8 billion) were left in its dust. The remaining balance could be enough to purchase a sizable chunk of General Motors, whose market cap now stands at $49.1 billion.
The rapid run in Tesla shares over the past three months, which accelerated to a dizzying pace over the past week, came on the back of two strong quarterly reports, the quick construction of its China factory, an ahead-of-schedule launch of the new Model Y crossover vehicle and a first profit for the battery plant the company jointly operates in Nevada with Panasonic Corp. Reviewing Tesla's quarterly update we find automotive revenue in Q4 2018 was Dollars 6.323 billion while Q4 2019 was USD 6.368 billion, up less than 1% YoY.
"While we continue to favor TSLA as the leading EV juggernaut and believe the April battery day will be a critical positive milestone for investors to understand how formidable the lead is that TSLA holds, we believe patient investors will likely get a more attractive entry point", said Canaccord analyst Jed Dorsheimer. Its market cap, which doesn't include debt and cash, was $159.9 billion; it became bigger than Ford and GM's combined on January 9.
As Tesla is the most shorted United States stock at the moment, with over US$15 billion in short interest making up 18% of its float, many analysts are expecting a so-called short squeeze - in which short sellers rush to buy more shares to protect against further losses.
The median price target of analysts is $390.
Tesla bulls are not about to be dissuaded though.
For now, with exceeding $170 billion, Tesla is cementing its place in the most valuable automaker in the US and at the same time spearheading the adoption of EVs around the world.
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