Tesla’s market capitalization briefly surpassed that of BMW on Friday morning as the electric automaker’s shares continue to surge.
Not long after exceeding the market caps of General Motors and Ford, the company’s value exceeded the $61.3 billion of BMW before dropping off to about $2.6 billion below at the close of trading.
Perhaps the most remarkable thing about Tesla’s surging value is that as of early December 2016, BMW was valued at $30 billion more, exemplifying just how confident investors have become of Elon Musk’s company throughout the first half of 2016.
Even Musk himself has been unable to explain the sudden increase in the electric automaker’s market value and many investors are still skeptical abut the firm, particularly since it has only ever posted two quarterly profits in its history. What’s more, Bloomberg reports that some believe Tesla could burn throughout upwards of $1 billion a quarter for the next “handful of quarters.”
The difference in production and profit numbers between BMW and Tesla are also particularly vast. Last year, the German premium carmaker sold almost 2.4 million vehicles compared to the sub-80,000 sold by Tesla. What’s more, BMW made $7.7 billion last year while Tesla lost around $725 million.
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