Tesla shares take off, taking it to the top automaker spot over ToyotaJuly 8, 2020
The electric vehicle maker became the most valuable carmaker in the world last week.
Tesla shares hit a record high last week, overtaking Toyota from Japan as the most valuable carmaker in the world.
This is a first for the company and for an automaker focused on electric vehicles.
Last Wednesday, Tesla shares hit $1,134 before sliding slightly. This was a historic high for the stocks and left the company with a market value of $209.47 billion. That represented about $4 billion more than Toyota’s stock market value at the time. Still, it’s important to keep in mind that in 2019, Toyota sold around 30 times more vehicles and its revenues were about 10 times higher than its electric vehicle making rival.
Tesla’s stock prices have been taking off since the start of this year. Investors have started settling in with the concept of electric vehicles and the future they present. Moreover, they have continued with their interest despite the fact that in May, Elon Musk, the company founder, managed to slash $14 billion off Tesla’s market value when he posted a tweet saying that the share price was too high.
Tesla stock price is too high imo
— Elon Musk (@elonmusk) May 1, 2020
The Tesla shares have exploded upward following years of consecutive losses for the US firm.
The Californian company has not only managed to bring its stock price to its highest ever level – and became the most valuable automaker – but also managed to keep up three consecutive profitable quarters. This momentum has continued forward throughout the length of this year so far, regardless of the coronavirus pandemic crisis.
Toyota is still keeping up its position as a considerably larger business when measured by sales. The automaker from Japan sold 10.46 million vehicles in the year ending in March and posted $281.20 billion in revenues, according to a BBC report.
Tesla’s sales last year were a notably lower $24.6 billion, having sold 367,300 vehicles throughout 2019. That said, investors are clearly seeing the electric vehicle maker’s potential as a dominant force in the growing EV market. It’s not difficult to see why, as Jeffries stockbroker analysts pointed out that it is “significantly ahead of peers in product range, capacity and technology.” This has sent the Tesla shares steadily skyward.