Tesla surpasses GM to become most valuable car company in US

Elon Musk's luxury car manufacturer, which has never made a profit, now worth $51.4bn after share prices soared unexpectedly starting last week

Forget Motor City. Silicon Valley now owns the most valuable car company in the US. Tesla, the loss-making electric luxury vehicle maker, became the most valuable car company in the US. When US markets closed on Monday the manufacturer was worth $51.54bn to second banana General Motors' $50.22bn after an upgrade by analysts at Piper Jaffray.

"We have driven a Tesla for seven months in preparation for this report, and after conducting investor meetings with the company last week, we're finally ready to take a stand," the firm's analysts, led by Alexander Potter, wrote in a note to investors published Monday morning. Piper Jaffray now rates Tesla stock at an equivalent to "buy".