Tesla overtakes Toyota to become world’s most valuable carmaker
Tesla has become the most valuable automaker in the world, surpassing Japanese Toyota after its title has reached a record high.
The electric carmaker’s shares touched $ 1,134 on Wednesday morning before falling back, leaving it with a market value of $ 209.47 billion (£ 165 billion).
That’s about $ 4 billion more than the present value of Toyota’s stock market.
However, Toyota sold around 30 times more cars last year and its revenues were more than 10 times higher.
Tesla’s stock has increased since early 2020 as investors have started to feel more confident about the future of electric vehicles.
- How Elon Musk aims to revolutionize battery technology
Nonetheless, its founder Elon Musk wiped out $ 14 billion from Tesla’s value in May after tweeting that his share price was too high.
After years of losses, the Californian company also provided three consecutive profitable quarters and maintained momentum during the first three months of 2020 despite the outbreak of the coronavirus.
Toyota, however, remains a much larger business in terms of sales.
The Japanese company sold 10.46 million vehicles in the year in March and posted revenues of 30.2 trillion yen ($ 281.20 billion).
Tesla ended 2019 with revenues of only $ 24.6 billion, having delivered 367,200 vehicles last year.
However, investors are thrilled with the potential of the US company, believing it to dominate the future electric car market.
Stockbroker analysts Jefferies said the company remained “significantly ahead of its competitors in the range of products, capabilities and technology.”
As proof of this, the company is now also worth about triple the combined value of US rivals General Motors and Ford.
Musk said Tesla will deliver at least 500,000 vehicles in 2020, a prediction that the company hasn’t changed despite the coronavirus pandemic.