Tesla, passing Boeing, becomes most valuable U.S. industrial firm
Tesla briefly passed Boeing last week as the most valuable industrial company in the U.S., marking a dramatic new milestone in the electric-car maker’s rally this year amid widespread stock volatility.
Tesla’s market capitalization exceeded Boeing’s by about $83 million last Wednesday in New York trading, according to data compiled by Bloomberg. Shares of Boeing, which have tumbled amid coronavirus concerns and the ongoing grounding of the planemaker’s best-selling 737 Max jetliner, plunged as much as 11 percent to the lowest intraday since July 2017.
Boeing is just the latest manufacturing stalwart and industry bellwether to be elbowed aside by the maker of the Model 3 sedan. The achievement is a particularly satisfying one for Chief Executive Officer Elon Musk, who competes in the rocket-launch sector with another of his companies, Space Exploration Technologies Corp.
Tesla shares have surged more than 50 percent this year following two straight quarters of better-than-expected earnings. The company topped Volkswagen AG in market value for the first time in January and is now the No. 2 automaker in the world by that measure, trailing only Toyota Motor Corp.
Boeing, meanwhile, is struggling with dwindling cash, a battered reputation and government probes of the Max debacle as it tries to emerge from one of the worst crises in its history. The manufacturer was planning to draw down the full amount of a $13.8 billion loan last week as it grappled with worldwide travel disruptions springing from the virus, people familiar with the matter said.