Elon Musk’s brainchild Tesla has become the world’s most valuable automotive manufacturer in the world after its share price hit a record high earlier today.
With Tesla stock hitting an all-time high of $1,134, this gave Tesla a market value of $209.47, around $4 billion more than its nearest competitor, Toyota, by market value.
To put that in some perspective, with that latest jump in stock, Tesla is valued at more than three-times the value of Ford and General Motors combined.
Toyota has for decades been the world’s largest auto manufacturer, and has managed to sell thirty times more cars than Tesla did last year.
The company’s revenue figure was also ten-times higher than Tesla’s 2019 figures.
The Japanese giant was unable to compete with Tesla’s 5 per cent single-day jump, which analysts have put down to a renewed confidence in electric vehicles.
According to a report from the ABC “Tesla shares have surged by 400 per cent over the past year and financial firm Refinitiv estimates that Tesla now trades at 69 times estimated 2022 earnings.”
Toyota, on the other hand, trades 10 times below its earnings for 2022.
Tesla is yet to post an annual profit, however, it’s a company that remains at the forefront of electric mobility, as well as the production of battery and storage technology for both automotive, residential and commercial use.
It has recently gathered momentum, though, after posting three profitable quarters – the latter of which was in spite of the coronavirus pandemic.
Tesla delivered 367,200 units last year, bringing in $24.6 billion in sales revenue, while Toyota sold 10.46 million units and $281 billion in sales revenue.
Mr Musk has reiterated that the company is aiming to deliver half a million units in 2020, as the company scales its production facilities, and invests in new production facilities overseas.
Analysts are confident in the ability of Tesla’s Model 3 to capture large portions of the car-buying public that are becoming more environmentally conscious. The company first launched its roadster, followed by the premium Model S, the Model X and the Model 3.
Tesla is hedging its bets on the Model 3 becoming a mass-adopted vehicle like Henry Ford’s Model T back in the early 20th century.
Earlier this year in May, Elon Musk reduced Tesla’s market value by a staggering $14 billion by suggesting the company was over-valued. He shared his observations via Twitter, which sent Tesla’s down dramatically.
Pensions & Investment Consultants have said that Mr Musk poses a “serious risk of reputational harm” due to his irratic Twitter posts.