NEW YORK: Tesla passed Boeing as the most valuable industrial company in the United States, closing a gap that was almost US$200 billion a year ago.
Boeing’s biggest one-day plunge in almost 40 years dropped its market capitalisation to US$106.5 billion, more than US$10 billion below Tesla’s value. The planemaker’s shares, already reeling since the grounding of its best-selling 737 Max jetliner, have been hammered by concerns about the coronavirus crimping global travel.
Tesla continues to elbow aside manufacturing stalwarts and industry bellwethers even as the virus costs the carmaker some of its own gains.
Topping Boeing is a particularly satisfying milestone for chief executive officer Elon Musk, who competes in the rocket-launch sector with another of his companies, Space Exploration Technologies Corp.
Tesla shares have surged 52% this year following two straight quarters of better-than-expected earnings. The company surpassed Volkswagen AG by market value for the first time in January to become the No. 2 automaker in the world by that measure, trailing only Toyota Motor Corp.
Boeing is meanwhile struggling with dwindling cash, a battered reputation and government probes of the Max debacle.
The manufacturer is planning to draw down the full amount of a US$13.8 billion loan as early as Friday as it grapples with worldwide travel disruptions springing from the virus, people familiar with the matter said.
CEO Dave Calhoun’s efforts to emerge from one of the worst crises in Boeing’s history sustained a fresh blow Wednesday when Air Canada reduced an order for the Max by 18%, or by 11 jets. The grounding of the plane will reach the one-year mark on March 13.
