A new history was written in the automobiles industry when Global electric car manufacturer Tesla became the most valuable automaker in the world when it surpassed the valuation of Toyota Motor Corp for the first time ever. The significant milestone has been seen as a step towards electric car dominance over traditional internal combustion-based cars.
Tesla’s shares have doubled its valuation since the beginning of the year, rose 3.5% on intraday trades to reach an all-time high of $1,135 which allowed the firm to surpass Toyota ($202bn) with a valuation of $206bn.
This event exhibits the trust shareholders have given to the pathbreaking Tesla and its CEO Elon Musk who was not shy to break conventional norms of trade while he set to create the world’s most accessible electric car.
Irrespective of surpassing every major automaker in its valuation, Tesla still has to go a long way to match their production and delivery targets. In the first quarter of 2020, Tesla produced 103,000 units; 5,390 units of Model S and X, 87,282 of Model 3 and Model Y vehicles, which were a mere 4% of 2.4 million units made by Toyota.
Tesla’s valuation still remains below Toyota when debt taken by the electric automaker is also considered. Revised valuation based on debt consideration puts Toyota at $290 billion and Tesla at $252 billion (based on FactSet data).
During the course of this milestone, Tesla became the world’s second-most valuable automaker by surpassing Volkswagen AG in January. The firm’s valuation now twice more than twice the German giant.
Thank you very much for choosing GCC Business News to be an important part of your professional life. You will receive a confirmation e-mail. Please check SPAM or UPDATES folder
