Tesla (TSLA) stock hits $500 for the first time

Tesla Inc CEO Elon Musk takes off his coat onstage during a delivery event for Tesla China-made Model 3 cars in Shanghai, China January 7, 2020.

Aly Song | Reuters

Tesla stock continued to rally on Monday, rising 5% and passing $500 per share for the first time.

That puts Tesla at a fresh all-time high as it continues to soar on its entrance into China and optimistic delivery figures. The stock has more than doubled over the past three months, according to FactSet.

The recent gains bring Tesla’s market cap to about $90 billion, which is nearly $5 billion more than that of General Motors and Ford combined. The companies’ market caps, which measures the value of their outstanding equity, don’t tell the full story, though.

Taking into account equity, debt and cash, the Detroit automakers have significantly higher total valuations. Ford would be worth the most with a total enterprise value of $154 billion, followed by GM at $132 billion, according to data compiled by FactSet.

Tesla stock has been on a tear this quarter after announcing surprise profits in its third-quarter earnings report in October of last year. Back then, the stock was just over $250 per share.

The company’s entrance into China has driven the stock higher. Tesla began deliveries of its Model 3 sedan in China at the end of 2019 and has reportedly ramped up production at the new factory to more than 1,000 vehicles per week. Earlier this month, CEO Elon Musk said Tesla plans to open a new design and engineering center in China and that it will use the Shanghai Gigafactory to build a production program for the upcoming Model Y crossover.

China is the world’s biggest for electric vehicles with 1.3 million new-energy vehicles sold last year.

Fourth-quarter delivery numbers published last week impressed investors, driving the stock to its current heights. Tesla said it delivered 112,000 vehicles in the quarter to finish out the year, which brought the total vehicles delivered in 2019 to approximately 367,500 vehicles, a 50% jump from 2018.

— CNBC’s Lora Kolodny and Michael Wayland contributed to this report.

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