Tesla has gotten a lead over Toyota’s current stock market value with roughly $4bn. However, Toyota sold around 30 times more cars and its revenues were more than 10 times higher last year.
Investors have begun to feel more confident about the future of electric vehicles which has brought about the surge in Tesla shares since the start of 2020.
After years of losses, the Californian firm has also delivered three profitable quarters in a row and maintained that momentum during the first three months of 2020 despite the coronavirus outbreak and Elon Musk having wiped $14bn off Tesla’s value in May after tweeting that its share price was too high.
The Japanese company posted revenues of 30 trillion yen ($278bn) which resulted in 10.7 million vehicles sold during the last year while Tesla delivered 367,500 vehicles last year with sales of just $24.6bn. Therefore in terms of sales Toyota remains a larger business.
However, investors believe Tesla could dominate the future electric car market, which makes them excited by the US firm’s potential.
Jefferies an analyst at the stockbroker said the firm remained “significantly ahead of peers in product range, capacity and technology”. In reflection, Tesla is now worth around three times the combined value of US rivals General Motors and Ford.
In early January 2020 tesla had the capacity to build 90k Model S/X and 400k Model 3/Y in Fremont, California, with an additional 150k capacity for Model 3s in Shanghai. By the end of the year, they expect to have 500k capacity for Model 3/Y in Fremont, and are in the process of installing additional capacity in Shanghai for Model 3 and Model Y.
The founder of Tesla had said the firm will deliver at least 500,000 vehicles in 2020. Despite the coronavirus pandemic, the company has not changed its words.