Tesla overtakes Toyota as world’s most valuable automaker
By BLOOMBERG | 03 July 2020
SAN FRANCISCO: Tesla Inc. displaced Toyota Motor Corp. as the world’s most valuable automaker, underscoring investor enthusiasm for a company trying to transform an industry that’s relied on internal combustion engines for more than 130 years.
Tesla’s market value has also surpassed Exxon Mobil Corp’s in a sign that investors are increasingly betting on a global energy transition away from fossil fuels.
Shares of Tesla, which have more than doubled since the start of the year, climbed as much as 3.5% in intraday trading Wednesday, giving it a market capitalisation of US$207.2 billion, surpassing Toyota’s US$201.9 billion.
Exxon, which dropped to US$185 billion, is reeling from the worst crude-price crash in history. The largest oil company in the Western Hemisphere is preparing to cut some of its US workforce.
Chief executive officer Elon Musk has ignored or broken many of the established auto industry’s rules and norms in the 10 years since he took Tesla public, selling cars online and assembling vehicles in high-cost California.
But while his company’s value has soared, there remains a gulf in the scale of his company and the world’s biggest car manufacturers.
Tesla produced 103,000 vehicles in the first quarter, or about 4% of the almost 2.4 million made by Toyota, which built its brand on affordability and reliability backed by innovations in large-scale manufacturing.
Tesla became the world’s second-most valuable automaker in January, when it surpassed Volkswagen AG. It’s now worth more than twice the German giant.
After pioneering gas-electric vehicles with the Prius hybrid, Toyota was late to shift to fully electric autos and has wagered heavily on hydrogen fuel cells.
The company is now making a series of high-profile investments in EVs and self-driving cars. The manufacturer has forecast an 80% plunge in profit this year and expects it could take until the first half of next year before the auto market recovers to pre-pandemic levels.
Toyota’s market valuation includes the 14.3% of shares that Toyota itself holds as treasury stock, worth around US$30 billion. Tesla doesn’t hold any treasury shares, according to data compiled by Bloomberg.
Tags
Autos Tesla
Reviews

Porsche Taycan E-xperience drive: Kuala Lumpur - Kuantan

Mercedes-Benz E 350 e PHEV: Refined elegance, timeless prest...

8.4
Mercedes-Benz E 350 e AMG Line: Best of both worlds

7.9
Xpeng G6 580 Pro: Fresh and fluidic

Guangzhou adventures: Zontes 368 scooter and 703 Adventure m...

7.6
Maserati GranTurismo (Mk2) Modena: Sharp and smooth operator

6.8
Triumph Tiger 900 GT Pro: Multi-talented adventurer

Hyundai Ioniq 5 N: Born rascal
Videos

StarCarSifu Editors' Choice Awards 2024: Top winners

The Snowball – Lamborghini’s Heartwarming Christmas Story of...

EVOGO battery swapping solution showcased at IAA Mobility 20...
