Tesla Is the First Junk-Rated Company to Get a $1 Trillion Valuation
- Stock jumped as much as 9.8% in biggest move since March 9
- Valuation gives bondholders ‘unprecedented’ equity cushion: BI
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If you were wondering which junk-rated company would be the first to reach a trillion-dollar market capitalization, your wait is over. It’s Tesla Inc.
The automaker’s debt may still be considered speculative-grade, but its stock passed the $1 trillion mark on Monday, according to data compiled by Bloomberg. Tesla shares, which have been on a tear as consumers around the world shift to electric vehicles, touched a record high of $998.74 earlier, jumping 9.8% for the best intraday performance since March 9. That pushed the company’s market capitalization above $1 trillion based on about a billion shares outstanding as of Oct. 21.