Tesla’s Market Cap Just Hit $500B for the First Time

It was an exciting day for electric vehicle company Tesla on Tuesday as the stock passed $500 billion in its market cap for the very first time.

The stock closed up 6.4% on Tuesday at $555.38 a share, a new all-time high. The company had become the first $100 billion publicly listed U.S. carmaker back in January.

The company’s enterprise multiple, or its enterprise value relative to EBITDA, exceeded 130 based on the company’s last 12 months, according to Factset.

It was last month that Tesla reported its fifth consecutive quarter of profit on third-quarter revenue of $8.77 billion. The company also said this month that it had delivered 139,300 vehicles during the third quarter, representing a new record for the carmaker.

On December 21st, Tesla is expected to join the S&P 500 before trading.

Morgan Stanley upgraded Tesla to a buy-equivalent overweight rating last week. This is the first time in years since Tesla has received a buy rating from the firm.

With how much shares of Tesla have risen this week, it is getting CEO Elon Musk closer to overtaking Bill Gates as the world’s second richest person according to the Bloomberg Billionaire Index.

Musk’s net worth has risen more than $100 billion this year.

In not so positive news, last week Tesla was hit with a new class action lawsuit as owners allege the California-based automaker continues to ignore suspension safety issues in older Model S and Model X EVs.

The suit was filed in a California federal court, spans 101 pages and alleges Tesla not only failed in its duty as an automaker to ensure owners’ safety, but it actively worked to cover the problem up.

The suit states, “Tesla is gambling with the lives and safety of hundreds of thousands of additional drivers and passengers whose vehicles suspension parts [are] at an imminent risk of failure.”

The electric vehicle maker does not operate a public relations department to field requests for comment on the lawsuit.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.