Tesla Inc. (NASDAQ:TSLA) market cap hit an all-time high of $201 billion, putting to rest doubts that the future will be about renewable energy. Its market cap has already surpassed Exxon Mobil Corporation (NYSE:XOM)’s, which at one time was the most valuable company in the world, given its interests and operations around fossil fuels.
Tesla Meteoric Rise
Tesla shares have been on a tear for the better part of the year, bouncing on huge volume in the aftermath of the COVID-19-triggered market crash on March 23, 2020. The stock is up by more than 200% for the year and showing no signs of slowing down.
The meteoric rise has coincided with optimism in the market that the electric giant is the future of the auto industry. In addition, the stock has continued to surge on optimism that the company can avoid a second-quarter net loss given the challenging environment triggered by the COVID-19 pandemic.
Tesla market is on course to surpass Toyota Motor Corp (NYSE:TM) and become the most valuable auto company given the amount of love it continues to enjoy on Wall Street. It has already beaten Volkswagen to become the second most valuable auto company and closing in first on Toyota. It has already beaten Boeing to become the most valuable industrial company specializing In the development of electric cars.
Exxon Mobil Woes
While Tesla has seen its market cap edge higher in recent years, it’s been a different story for Exxon Mobil. The energy company has seen its prospects and sentiments dwindle in recent years as focus shifts towards renewable energy.
A plunge in oil prices to record lows from highs of above the $100 a barrel mark has dealt Exxon Mobil growth metric and prospects a big blow. Similarly, the company is susceptible to seeing its market value shrink even further as oil prices remain under pressure amidst the COVID-19 pandemic.
For Tesla, the future can only be bright as more people become environmentally cautious and turn to electric cars. The company has also received a boost on authorities around the world passing legislation for environmental protection in terms of emissions that have only gone to strengthen its core electric car business.