Tesla’s stock has more than doubled in the past three months, pushing its market capitalization to almost $89 billion. That’s $2 billion more than GM and Ford’s market caps combined.
On Wednesday, Tesla stock closed at $492.14, which was a record for the brand, after stock jumped 5%.
The jump was fueled by surprise third-quarter profit, progress at its factory in China, and fourth-quarter deliveries that were better than expected. In all, Tesla sold nearly 370,000 cars last year, a number that was dwarfed by both Ford and GM, which each sold 2 million cars last year.
The lead it has over GM and Ford also reflects those companies’ underperformance. GM shares haven’t changed meaningfully in the last year, while Ford’s only rose 10%. That means that both are lagging behind the overall market–likely as a result of a sales slump in China.
Tesla’s stock price is a sign of investors’ confidence in the company and its future growth and has defied short sellers. Despite that, some investors, like MainStay capital’s Chief Investment Strategist David Kudla, aren’t quite sold.
“It’s clear that Tesla is back to being a story stock and there’s a lot of good news out there,” Kudla, told Reuters. “But there are still some problematic issues out there, chief among them is what will its sustained profitability look like, and when will it start to be valued like a car company and not a tech company.”
With the unveiling of the Cybertruck and the promise of the Model Y, it’s clear that Tesla hasn’t yet been crushed by the automotive old guard. Whether it will survive the coming wave of EVs remains to be seen, though.
That uncertainty has led to disparate opinions on Wall Street. According to Refinitiv data, 11 Wall Street analysts rate Tesla as “buy,” while 13 rate it as sell, and nine are neutral.