Tesla drives past Toyota in market cap

California, July 2

Tesla Inc on Wednesday became the highest-valued automaker as its shares surged to record highs and the electric carmaker’s market capitalisation overtook that of former frontrunner Toyota Motors Corp. Tesla shares gained 5% in early morning trade to a record of $1,133, boosting the company’s market cap to $209.47 billion — roughly $6 billion more than Toyota is currently valued by investors.

Tesla is now worth more than triple the combined value of General Motors and Ford Motor Co. The shares’ meteoric rise, up more than 163% since the start of 2020, highlight growing confidence among investors about the future of electric vehicles and Tesla’s shift from a niche carmaker into a global leader in cleaner cars.

After several years of losses, Tesla has delivered three straight profitable quarters and surprised investors with solid first-quarter deliveries despite the virus outbreak. — Reuters