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Eli Lilly’s market capitalization surpassed Tesla’s on Thursday as the electric car maker’s shares continued to fall.
Tesla’s market capitalization closed Thursday at $581 billion (nearly 534 billion euros), lower than Eli Lilly’s at $595 billion (546.7 billion euros).
The shares of the Elon Musk-led automobile manufacturer fell by twelve percent after a weak earnings report.
This is a machine translation of an article from our US colleagues at Business Insider. It was automatically translated and checked by an editor.
after the Tesla Stock fell 12 percent in a single day, drug maker Eli Lilly surpassed the electric car maker’s market value.
The decline cost Tesla $80 billion (€73.5 billion) in market capitalization. The trigger was a disappointing earnings report in which the company missed estimates for sales and profit in the fourth quarter. It also signaled weak growth for the coming year. Tesla also received criticism for an earnings release that one analyst called a “train wreck.”
The company’s market capitalization fell to $581 billion (almost €534 billion) by the close on Thursday, while Eli Lilly was at $595 billion (€546.7 billion). Eli Lilly is currently best known for the production of weight loss syringes.
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The drugmaker’s overtaking of Tesla began in 2023. Eli Lilly jumped on the board with its weight-loss drugs Mounjaro and Zepbound Ozempic madness on. Shares rose 59 percent over the year. The stock has risen 79 percent in the last twelve months.
Despite being named one of the “Magnificent 7” technology stocks that have supported the market’s rally over the last year, Tesla’s shares have fallen 27 percent this month alone. In addition, Tesla was recently acquired by the Chinese electric car manufacturer BYD overtaken in terms of car sales.
Wednesday’s earnings report contained a “triad of bad news,” explains Wells Fargo analyst Colin Langan. The company expects revenue growth to slow in 2024. It can’t cut costs any further and Musk has angered investors with his push to own a 25 percent stake in the company, Langan describes.
Meanwhile, analysts are far more optimistic about Lilly. Last month, Goldman Sachs said the stock could rise 140 percent by 2028 as demand for GLP-1 drugs increases. And billionaire investor Ken Langone said the company will become the first trillion-dollar drug company in history.
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