Tesla on Top
With the US share market making up some of the ground it lost recently, and investors more confident of an electric future, Tesla has overhauled Toyota as the world's most valuable carmaker. And that’s despite founder Elon Musk saying recently that its share price was too high.
Shares in the Californian-based electric vehicle manufacturer touched $1134 this week, meaning it had a market value of $US209.47b, just eclipsing that of the Japanese giant. It is worth more than three times as much as GM and Ford combined.
Not that it as big as any of these; Toyota sold roughly 30 times more vehicles last year and its income was 10-fold higher.
After years of losing millions each quarter, the Californian-based tech firm has now delivered three profitable quarters in a row - the launch of the Model 3 helped - and has maintained that momentum this year despite the temporary factory closure caused by the coronavirus epidemic. Ongoing profitability is likely due to the Model Y compact SUV deliveries beginning recently.
Toyota, on the other hand, sells far more vehicles, 10.46 million in the year to March, with revenues of $US281bn.
Tesla’s income from last year was less than one-tenth of Toyota’s, and they built and delivered 367,000 vehicles in that period. Musk is promising production will exceed half a million units this year.
But it is the US firm's potential to dominate the electric car market that has investors so gung-ho. Analysts agree, putting Tesla significantly ahead of the competition.