Tesla becomes most valuable car company in the world

Tesla's shares rose about 8.9 percent to hit $1,025 making the Silicon Valley company the second-most valuable automaker in the world, behind Japan's Toyota Motor Corp.

Tesla's new electric semi truck is unveiled during a presentation in Hawthorne, California, US, November 16, 2017.
Reuters

Tesla's new electric semi truck is unveiled during a presentation in Hawthorne, California, US, November 16, 2017.

Tesla Inc's stock jumped to $1,025 a share on Thursday after Chief Executive Elon Musk told his staff on Wednesday it was time to bring the Tesla Semi commercial truck to "volume production."

Musk did not specify a time frame for ramping up production of the Semi. 

Musk on Wednesday tweeted "yes" to a question on Twitter about whether the report of the leaked Semi truck production email was accurate.

Tesla's shares rose about 8.9 percent to hit $1,025 on Thursday after Musk's email was reported, making the Silicon Valley company the second-most valuable automaker in the world, behind Japan's Toyota Motor Corp. 

A million-mile battery

Markets predict the share price could even reach as high as $1,500 after Musk unveils new "million-mile" battery technology that could deliver longer life, lower costs and better range for future Tesla vehicles.

"Production of the battery and powertrain will take place at Giga Nevada," Musk wrote. Most of the other work will probably take place in other states, he wrote, without stating where.

Musk has said Tesla is scouting other US states for a site to build a new factory, hinting that Texas could be a candidate. Oklahoma and other states are campaigning for the investment.

When Musk unveiled the prototype of the futuristic, battery-powered Semi in 2017, he said the Class 8 truck would go into production by 2019. More recently, he said the Semi would go into volume production by 2021.

Musk's Tuesday message coincides with a surge in the share price of rival clean truck maker Nikola Corp.

Nikola's electric truck

Nikola, an electric and fuel cell truck startup, earlier this month began trading on the NASDAQ after it merged with special purpose acquisition company VectoIQ.

Shares in Nikola have more than doubled in price over the past week as the company's CEO has used Twitter and interviews to promote plans to launch an electric pickup truck to Tesla's forthcoming Cybertruck.

Nikola and CNH Industrial's IVECO commercial truck operation last year formed a joint venture to build a battery electric and fuel cell truck line called the Nikola Tre. 

IVECO has said orders are strong for the electric version of the truck, due out next year.

Nikola on Wednesday said it had hired a former Tesla executive, Mark Duchesne, to lead its manufacturing and a former Caterpillar executive, Pablo Koziner, to head its hydrogen fueling and battery recharging business.

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