Elon Musk’s Tesla has surpassed Toyota to become the world’s most valuable car company, all without actually making a profit.
Interesting Engineering reports that Tesla has officially become the world’s most valuable carmaker, surpassing Japanese giant Toyota as interest in electric vehicles increases. Shares in Telsa went up over 4 percent on Wednesday, reaching $1,100 per share putting Tesla’s valuation at $209 billion, higher than Toyota’s $205 billion.
Tesla’s high valuation despite never turning a profit seems to be based on the growing electric vehicle (EV) market and the company’s potential growth prospects. Analysts at Jeffries discussed the valuation with the Guardian stating that the Wuhan coronavirus pandemic may have had an impact on the EV market due to calls for the use of cleaner fuels worldwide.
“We see Covid-19 as an accelerator of the transition to EVs [electric vehicles] and renewables, from consumers and public policy,” they stated. “Tesla remains significantly ahead of peers in product range, capacity and technology.
— Tesla Owners Silicon Valley (@teslaownersSV) June 14, 2020
Tesla’s Chinese supplier has reportedly been working on a “million mile” battery, a vehicle battery that could last up to 16 years which could minimize the cost of electric vehicles. Tesla’s stock price has seen an incredible surge in the past month alone, in mid-June the company was being praised for reaching a $184 billion market valuation ahead of Totoya’s $179 billion at the time. Within two weeks, Tesla has added around $25 billion to its valuation despite no major announcements or company changes.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan or contact via secure email at the address firstname.lastname@example.org