This is some kind of a bizarre milestone.
Tesla Is Now America’s Most Valuable Industrial Company After Surpassing Boeing
Martin Lerma
Robb ReportMarch 11, 2020
Tesla’s winning streak continues. The California-based EV automaker is now the country’s most valuable industrial company after besting aerospace giant Boeing.
Tesla’s market valuation surpassed Boeing’s by more than $10 billion on Wednesday morning, according to Bloomberg. The news is yet another laurel for the car manufacturer and CEO Elon Musk, considering that the gap between the companies was $200 billion only a year ago.
Tesla’s value has ballooned over recent months, surpassing nearly all of its other major rivals. The company’s shares have surged 52 percent this year alone, following two straight quarters of earnings that beat expectations. In January, the company became the first US automaker to surpass the $100 billion mark, making it worth more than General Motors and Ford combined. That month also marked the first time Tesla surpassed Volkswagen, which makes it the world’s No. 2 automaker behind only Toyota.
Boeing, in contrast, has struggled through perhaps its biggest crisis in its history. The aerospace company is reportedly suffering from diminishing cash more than a year after two of its 737 Max airplanes crashed and the model was grounded amid multiple government probes. Now, as the spread of the coronavirus curtails global travel and disrupts the industry, the manufacturer is reportedly taking a $13.8 billion loan to offset more potential losses.
Whether or not a loan will be enough to turn things around for Boeing is an open question. But the company was dealt another financial setback on Wednesday. Air Canada announced that it will cut its latest Max order by 11 jets—nearly 20 percent of the airline’s original order.
As for Tesla’s Elon Musk, surpassing Boeing is a notably win for the CEO. Boeing, after all, isn’t just a market juggernaut; it competes directly with Tesla’s emerging Space X company in the rocket-launch sector.
finance.yahoo.com |
