Last night, Tesla's stock soared by an impressive 7.94%, marking a new high as it reached $816 per shareThis surge pushed the company’s market capitalization to a staggering record of nearly $780 billion, exceeding the total market value of all traditional automotive manufacturers combinedThe spike in Tesla's stock not only cemented its dominance in the electric vehicle market but also propelled Elon Musk past Amazon's Jeff Bezos, making him the richest person in the world.

The Bloomberg Billionaires Index now lists Musk's fortune at $195 billion, compared to Bezos's $185 billion, with Microsoft co-founder Bill Gates trailing in third place with $134 billionIt is worth noting that Musk's wealth growth rate is possibly the fastest globally, driven by Tesla's stock price explosionIn 2020 alone, the stock surged by an astonishing 743%, and early indications in 2021 suggest an additional increase of 15%.

When asked about his newfound status as the world’s richest person, Musk's response was intriguing: "Alright, back to work…!" This showcases a level of composure not typically seen among those who attain such high wealth

In reality, Musk’s net worth might be slightly higher than the reported $195 billion, likely exceeding $200 billionThis estimation arises from the fact that Bloomberg's rankings are real-time, while Tesla’s closing price saw a final adjustment reflecting a 7.94% increase.

Furthermore, Tesla's market valuation has now eclipsed that of traditional automotive giants combinedToyota, currently the most valuable traditional car maker, boasts a market cap of $213 billion, followed closely by Volkswagen at about $105 billionThese two corporations are the only traditional automakers to exceed the $100 billion mark, while Chinese electric vehicle manufacturer BYD approaches with a market value of $91.2 billion.

In the traditional automotive sector, Daimler, the parent company of Mercedes-Benz, holds a market cap of $78.5 billion, with Geely as its primary shareholder owning 9.69% of the company

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General Motors trails with a market cap of $62 billion, while BMW stands at $57.4 billionChinese automaker Great Wall Motor is catching up with a valuation of approximately $50.4 billion, surpassing Honda's $48.6 billion market cap and approaching BMW's valuation.

Automobile manufacturers like SAIC Motor are currently valued at $46 billion, which exceeds Ferrari's valuation of $41 billion, while Foton Motors is at $36 billion and Geely is valued at $34.7 billionAlthough several more companies exist with varying valuations, the major players in the automotive industry are representedAn observation emerges: Tesla's current market valuation surpasses the consolidated values of all traditional automobile manufacturers worldwide, raising questions about whether this constitutes market speculation.

Arguments on whether Tesla's soaring market valuation is a result of overvaluation remain varied among investors

Aligning with the notable bullish trend in renewable vehicles, many investors exhibit optimism, while prominent figures like Cao Dewang, a major player in the automotive parts industry, have expressed concern about potential bubbling in the EV marketAs the world’s largest automotive glass supplier, his caution should not be overlooked.

The rise of new forces in car manufacturing within China is also noteworthyNIO's market cap has reached $85 billion, Xpeng Motors is valued at $35 billion, and Li Auto has a valuation of $31 billionRanking by market cap, it’s significant that China claims two of the top five spots in global automotive companies with BYD and NIO.

The story of NIO’s resurgence plays an interesting role hereOnce considered on the brink of collapse over a year ago due to unsuccessful negotiations with Shanghai, NIO found itself competing with Tesla directly

During that tense period, NIO's stock plummeted to $1.19 per share, resulting in a market cap of only $1.6 billionHowever, after settling discussions with Hefei and receiving robust government support, the company’s stock began to skyrocket, peaking at $57.2 per share, with its current price resting around $54.

If Hefei is credited with salvaging NIO, then it can be argued that China essentially saved Tesla during its dire straits from mid-2017 to mid-2019 when the company faced financial ruinDuring that tumultuous period, Musk dealt with immense pressure and even faced the prospect of removal from the board, similar to what happened to Steve Jobs previouslyIn June 2019, Tesla's stock plummeted to $177, reducing its market cap to $30 billion.

The tide began to turn when Tesla secured agreements with Shanghai, leading to the groundbreaking of its Gigafactory in January 2019, which remarkably saw its first batch of vehicles delivered by December 30, 2019. This rapid turnaround highlights the exceptional pace at which business operations can materialize in China — a phenomenon often referred to as the "China speed." Musk celebrated this pivotal moment with exuberance, famously removing his shirt and dancing in jubilation, marking the beginning of Tesla's monumental rise in stock valuation, now reaching a staggering $780 billion.