Tesla Is Now World’s Most Valuable Automaker After Overtaking Toyota

Tesla Is Now World’s Most Valuable Automaker After Overtaking Toyota

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Tesla had another reason to celebrate recently after topping the list of the worlds most valuable automakers, and overtaking Toyota in the process.

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Tesla Is Now World’s Most Valuable Automaker After Overtaking Toyota

Tesla is now at the top of the automaker food chain after exceeding Toyota’s market capitalization. The American electric vehicle manufacturer’s market cap is now ahead of the ubiquitous Japanese automobile giant by more than $1 billion. Tesla’s feat comes just months after its stock shares plummeted, due to company CEO, Elon Musk’s capricious behavior on social media.

Despite the pandemic’s devastating effect on the economy, especially in the automobile industry, the meteoric rise of Tesla’s value shows no signs of slowing down, with the company gaining an increase in value by over 20 percent from last year. The company just beat the likes of Volkswagen AG earlier this year, earning itself the title of the second most-valuable automobile manufacturer, only to claim top spot just months later. The world’s most renowned automakers such as Toyota, Volkswagen and General Motors have all struggled with declining sales caused by the pandemic, while Tesla’s Model 3 still managed to retain the title of UK’s highest-selling vehicle for two months in a row.

According to Bloomberg, Toyota’s $201.9 billion market cap was trumped by Tesla’s $207.2 billion valuation. Tesla had previously edged Toyota about a month ago, only to be bested by the Japanese automotive conglomerate a week later. Now, Tesla didn’t just regain the top spot on the pedestal, it also separated itself from its competition by raising its market cap to more than double that of its fellow American automakers, Ford and General Motors. Even the number of pre-orders for the company’s Cybertruck, an EV that critics lambasted for its questionable design, continues to defy the odds by doing surprisingly well. Tesla might’ve edged Toyota’s market cap, but its recent sales numbers are still only a fraction of what Toyota sold within the year. In fact, in the first quarter alone, the number of vehicles that Tesla manufactured amounted to only 4 percent of what Toyota produced.

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On Top, But Tesla Still Has A Long Road Ahead

Tesla has come a long way since going public back in 2010. For example, its stock price has skyrocketed, from having an initial public offering of $17 apiece, to now being over $1,000 per share. As if that wasn’t enough, the Tesla CEO’s recent philanthropic efforts are also likely to attract even more investors. However, Tesla’s recent milestone is by no means reason enough for the company to stay complacent. It will still need to ramp up its EV production before Tesla can even come close to rivaling Toyota’s success.

In addition, Musk’s volatile social media mishaps have already cost the company more than they should have. If Tesla still aims to become the EV industry leader that its investors are hoping it will be, then perhaps the company’s visionary leader might need to consider doubling manufacturing efforts, as well as acting less often on the urge to Tweet.

Link Source : https://screenrant.com/tesla-worlds-most-valuable-automaker-toyota/

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