Tesla last week became the highest-valued automaker as their shares boiled up to record highs, carrying their market capitalisation higher than that of former front runner Toyota.
The surge boosted Tesla’s market capitalisation to USD $209bn—over three times the combined value of GM and Ford, and about $6bn more than Toyota’s current investor value. This rise in Tesla’s value of over 163% since the start of 2020 probably reflects 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 have delivered three straight profitable quarters since Q3-2019, and surprised investors with solid Q1 deliveries despite the pandemic.
Toyota, one of the world’s most profitable automakers, sold 10.46 million vehicles during their 2019 financial year ended this past 31 March 31, over which they reported net revenues of $280bn. Tesla, for their part, ended 2019 with $25bn in revenues, having delivered 367,200 vehicles last year.
Notoriously brash CEO Elon Musk has said Tesla will deliver at least 500,000 vehicles in 2020, a forecast the company haven’t revised despite the coronavirus pandemic, though the fiery corporate performance comes at a human cost: despite coronavirus lockdown laws, Musk has kept Tesla factories running and ordered workers to choose between reporting for work (and risking infection) or losing their jobs.