Tesla overtakes Toyota to become world's most valuable auto maker

Brenda Watkins
July 2, 2020

That pushed it past Toyota which has a market value of $US202.5 billion ($292.4 billion) despite the Japanese automotive titan making 30 times the number of cars than its upstart electric rival. Toyota, the second largest carmaker with an annual production of over 10 million cars, trails behind with a market capitalisation of US$200 billion (RM857.1 billion).

Tesla is even further ahead of other competing automakers.

Electric vehicle maker Tesla has taken over Toyota as the most valuable auto manufacturer in the world as its share price keeps soaring in 2020. Tesla shares popped this morning, and the company's market cap now stands at almost $208 billion, surpassing Toyota.

Though Tesla may now be considered the most valuable automaker in the world, it's not because of scale.

Despite its valuation, Tesla falls behind Toyota in production.

Daily Crunch: Tesla becomes the most valuable automaker in the world

In a statement to the Los Angeles Times, NHTSA said that it was "well aware of the reports regarding this issue and will take action if appropriate based upon the facts and data" and reminded manufacturers that they are required "to notify the agency within five days of when the manufacturer becomes aware of a safety related defect and conduct a recall".

Investors are keenly interested in the electic vehicle market, but Cowen analyst Jeffrey Osborne is still caution in his outlook for Tesla in the long run. The company is viewed more as a tech company than an automaker. CEO Elon Musk in the past said Tesla would deliver at least 500 000 vehicles in 2020, a forecast the company has not changed despite the coronavirus pandemic.

That is despite its founder Elon Musk having wiped $14bn off Tesla's value in May after tweeting that its share price was too high.

If Tesla manages to turn a profit in the second quarter, it will become eligible to be added to the S&P 500 index, which would create enormous demand for Tesla stock as passive funds and ETFs tied to the index would be forced to buy Tesla shares.

U.S. buys almost entire world's supply of Covid-19 drug remdesivir
He also said that the deal was partly to be expected, given that Gilead Sciences is a United States company, the BBC reported. Bottles of US pharmaceutical giant Gilead Sciences Inc.'s Remdesivir are displayed at a Seoul hospital on June 3, 2020.

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