Tesla zooms past Buffett's Berkshire to become 6th-largest US company

Tesla's market capitalization reached $555.24B

A blistering rally in Tesla Inc.’s share price fueled by news the electric-car maker would join the S&P 500 has catapulted its market value into the No. 6 spot among U.S. companies.

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Tesla’s market cap reached $555.24 billion on Friday, surpassing that of Warren Buffett’s Berkshire Hathaway. The Elon Musk-led Tesla now trails only tech stalwarts Apple Inc., Microsoft Corp., Amazon Inc., Alphabet Inc. and Facebook Inc. Apple is the most-value U.S. company with a market cap of $1.98 trillion while Facebook is worth $788.8 billion.

TickerSecurityLastChangeChange %
TSLATESLA INC.826.16-18.84-2.23%
BRK.ABERKSHIRE HATHAWAY INC.350,320.00-2,481.00-0.70%

Tesla has gained $168 billion in market cap since S&P Dow Jones Indices announced Nov. 16 that the automaker would be added to the benchmark S&P 500 on Dec. 21, according to data from the Dow Jones Market Group.

The recent gains appear to be the icing on the cake in what is shaping up to be a banner year for Tesla shares, which have gained 600% this year through Friday. The company’s market cap is now larger than auto icons Toyota Motor Corp., Ford Motor Co. and General Motors Co. combined.

Wall Street analysts have recently ratcheted expectations even higher.

Morgan Stanley analyst Adam Jonas raised his price target Nov. 18 to $540 per share, which has already been surpassed, due to the value of Tesla’s services business.

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Less than a week later, Wedbush analyst Dan Ives raised his target to $560 per share due to growing demand from China and Europe.

His bull case scenario calls for shares to reach $1,000 apiece on the belief Tesla could deliver 1 million vehicles as early as 2022. That would give the company a market capitalization of more than $946 billion.