Tesla Is Now The World’s Most Valuable Car Company With A $208 Billion Valuation
Tesla’s stock jumped to a new record high on Wednesday, giving the electric vehicle maker a valuation of more than $208 billion, which means that it is now the most valuable car company on the planet.
Tesla stock (ticker: TSLA) closed up 3.7% Wednesday, giving the electric vehicle pioneer a market value of about $208 billion.
That eclipses the Toyota Motor (TM) market value of roughly $202 billion. Toyota shares were down about 1% in overseas trading.
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Tesla, of course, eclipsed Toyota earlier in the day, but daily closing prices are typically the ones recorded in the history books. And today is a historic day for now market-leading Tesla.
An incredible year-to-date rally propelled Tesla to be number one. Shares have soared more than 168% year to date. And over the past month, Tesla shares have climbed more than 20%.
Toyota stock, on the other hand, is down 12% in 2020. Rising second-quarter delivery estimates catalyzed the recent Tesla stock move.
The second quarter has higher stakes than most other quarters, because if Tesla earns enough money, it will meet criteria for inclusion in the S&P 500 index.
After years of losses, the Californian firm has also delivered three profitable quarters in a row and maintained that momentum during the first three months of 2020 despite the coronavirus outbreak.
Toyota, however, remains a far larger business in terms of sales.
The Japanese company sold 10.46 million vehicles in the year to March and posted revenues of 30.2 trillion yen ($281.20bn).
Tesla ended 2019 with sales of just $24.6bn, having delivered 367,200 vehicles last year.
However, investors are excited by the US firm’s potential, believing it could dominate the future electric car market.
Analysts at the stockbroker Jefferies said the firm remained “significantly ahead of peers in product range, capacity and technology”.
In a reflection of that, the firm is also now worth around three times the combined value of US rivals General Motors and Ford.
Mr Musk has said Tesla will deliver at least 500,000 vehicles in 2020, a forecast the company has not changed despite the coronavirus pandemic.