With a market capitalization of $20 billion, shareholders are valuing Tesla (NASDAQ:TSLA) more like a technology company than an automaker.
There is some reason for their enthusiasm. Sales have been great in California, the company’s home base and the largest U.S auto market. The California New Car Dealers Association on Monday reported sales results for the first six months of 2013, and Tesla’s Model S was the third-best selling luxury sedan after Daimler’s (DDAIF.PK) Mercedes-Benz E Class and BMW’s 5 Series models. In fact, this particular piece of news sent shares of the electric vehicle manufacturer to a new all-time high of $173. When the company’s stock price surged past $172.75 during that rally, its market capitalization hit $20 billion.
“Justified or not, the expectations for this company are now very high,” Baum & Associates automobile analyst Alan Baum told Bloomberg. He likened the electric vehicle manufacturer to Apple (NASDAQ:AAPL), saying the company has “managed to cross the automotive and technology fields to become this hot commodity.”