Tesla has become the most valuable US car maker of all time after the company closed Monday with a market value of $81.39billion.
The company surpassed Ford Motor's peak of $80.81billion that was set in 1999.
Tesla shares were trading more than 5 percent before the market opened Wednesday and finished the day before at $469.07.
But Tesla's market value still trails Toyota Motor Corp and Volkswagen AG. Toyota Motor Corp is valued at $227.90billion while Volkswagen sat at $98.65billion by Monday's close.
Tesla (file image) has become the most valuable US car maker of all time after the company closed Monday with a market value of $81.39billion
The company surpassed Ford Motor's peak of $80.81billion that was set in 1999. This graphic shows Tesla and Ford Motor closings on Monday
Tesla is currently the sales leader in the US, according to the latest data compiled by the Edison Electric Institute, an association that represents all of the country's investor-owned electric companies.
Tesla, as the sales front runner, also leads with the top selling model, its Model 3, according to EEI.
While there are almost 1.2 million electric cars on the road, according to EEI, the segment still only represents 1.8 per cent of the total number of cars sold in the US market.
Tesla's short sellers have lost a stunning $8.4billion over the last seven months as the electronic car manufacturer's stock hit a record high and beat investor expectations.
Short positions on Tesla shares suffered more losses than on any other company, according to S3 Partners, a financial analytics firm.
Tesla tops the list in US sales of all electric vehicles, according to the latest data compiled by the Edison Electric Institute
Tesla, the front-runner in electric vehicle sales in the US, also has the best-selling vehicle, its Model 3, according to EEI
However, while there are almost 1.2 million electric cars on the road, according to EEI, the segment still only represents 1.8 per cent of the total number of cars sold in the US
On Friday, Tesla's shares climbed another 3 per cent to close at $443.01 after reporting record fourth quarter sales.
In the first two trading days of 2020, short sellers lost more than $700million, according to S3.
About 36 per cent of shares were being sold short in May, however many Tesla short holders are still holding onto to their stocks, adamant that Tesla shares will plunge.
Tesla creator Elon Musk has been an outspoken critic of short sellers, saying they deliberately try to hurt the company by driving down shares.
On Tuesday, Elon Musk delivered a speech at the delivery ceremony of the first batch of Shanghai made Tesla Model 3 sedans in Shanghai, China. Ten customers became the first owners of the electric cars beyond the Tesla staff
Tesla announced on Friday that they delivered 112,000 vehicles in the fourth quarter, beating the expectations of 104,960 vehicles, according to IBES data from Refinitiv. Pictured is the Tesla factory in Fremont, California
In 2018 Musk deliberated making Tesla a private company just to stop dealing with shorts.
He said their 'negative propaganda' was a reason to get off the public market and that being a public company creates 'perverse incentives for people to try to harm what we're all trying to achieve'.
But Musk got himself into hot water with federal regulators when he tweeted that same year that he had secured the funding to take Tesla private at $420 a share - a substantial premium over the company's stock price at the time - when he did not.
That tweet, in August 2018, sent Tesla's stock on a wild ride. The US Securities and Exchange Commission stepped in and charged that the post hurt investors who bought the stock after the tweet but before they had accurate information.
The Roadster (pictured) was Tesla's first production model
Musk is pictured in 2017 at the unveiling of a second-generation Roadster, the Roadster 2
Tesla, in an agreement with the SEC, paid $20 million to settle claims it had not properly policed Musk's social media posts.
Meanwhile, unsold Tesla vehicles were seen parked in lots around the country after Tesla claimed it successfully ramped up production of its pivotal Model 3 sedan during the summer.
An aerial photo of thousands of unsold Tesla vehicles that were left parked several lots around the country in 2018
The Tesla 3 is pictured in production at Tesla's plant in Fremont, California
That suggested to some that the company wasn't making its production goals.
A leaked email from Musk began changing those perceptions this past September, indicating growing demand for the electric automaker's vehicles and causing shares in the company jump 6 percent.
Tesla then had its biggest trading day ever on December 18, when the stock hit $392.50, a jump of 4.3 per cent as sources said the company was exploring a 20 per cent price cut for its Model 3 sedan to compete with rivals.
2003 - Founded as Tesla Motors by engineers Martin Eberhard and Marc Tarpenning
2004 - Elon Musk, a PayPal co-founder, engineer and technology entrepreneur who also started aerospace manufacturer SpaceX, along with J.B. Straubel and Ian Wright join Tesla as co-founders
2008 - The Roadster, the company's flagship, all-electric car, is introduced at a price of $109,000 after federal tax cuts, and is considered a luxury item as the company. Investors pour more money into Tesla while a financially-strapped Musk is saved by a $1.6 billion NASA contract awarded to SpaceX
2009 - The Model S is unveiled as the company's second production vehicle
2010 - Tesla pays $42 million to purchase an old vehicle production plant in California and goes public the same year at $17 per share
2012 - Tesla unveils a mid-size SUV know as the Model X as it begins selling Model S for $75,000
2014 - Tesla builds its 'Gigafactory 1,' in Sparks, Nevada, to build battery packs for its vehicles
2018 - Musk tweets he secured funding to take Tesla private at $420 a share, a substantial premium at the time over the company's stock price, when he actually hadn't and Tesla agrees to pay $20 million to settle claims it had not properly policed the co-founder's social media posts. Meanwhile, unsold Tesla vehicles are seen parked in lots around the country
2020 - Tesla's new plant in Shanghai promises to ramp up production of its new $35,000 Model 3 and after the company delivered 112,000 vehicles in the fourth quarter, beating expectations
By the close of trading Friday, Tesla seemed to have put any production concerns behind it, announcing it delivered 112,000 vehicles in the fourth quarter.
That beat expectations of 104,960 vehicles, according to IBES data from Refinitiv.
The company delivered approximately 367,500 vehicles during all of 2019, just meeting the low end of its target to deliver 360,000 to 400,000 vehicles.
Tesla said it demonstrated a production run-rate capability of more than 3,000 units per week at the Shanghai factory.
However, short holders still expect Tesla to be eventually overtaken by more established car companies such as General Motors, Ford and BMW entering the electric car industry.
'We think questions remain about first half 2020 results and gross margin sustainability; we point out that Tesla is already lowering prices in China and faces a flood of (electric vehicle) competition in the US, with at least 25 new models debuting this year,' CFRA analyst Garrett Nelson wrote in a client note on Friday.
The gains in Tesla's shares have elevated its market capitalization to more than $80billion, compared to GM's market value of $52billion and Ford's market capitalization of $37billion, according to Reuters.
The 48-year-old Musk, who's also had to contend with the challenges of getting his SpaceX aerospace company off the ground, as well as three divorces, including his split, remarriage, and second split with Talulah Riley, didn't hide his satisfaction over finally getting the Tesla Model 3 officially launched Tuesday.
Social media in China was abuzz with images and video of Musk celebrating with a unique disco dance routine in his $2billion 'Gigafactory' in Shanghai - exactly one year after construction of the massive plant began.
Musk, worth $27.8billion according to Forbes, busted out his moves on stage as his Chinese staff cheered during the inauguration ceremony, which was also attended by the city's Mayor and other senior government officials.
A China-made Tesla Model 3 vehicle is seen at a delivery ceremony in Tesla's Shanghai Gigafactory in December
Tesla reported that it delivered China-made Model 3s to 10 customers from the public.
Last Monday, the company handed the very first batch of the sedans to 15 employees who had placed orders.