Tesla Inc has overtaken Germany’s Volkswagen as the world’s second most valuable car maker behind Japan’s Toyota due to the meteoric rise in the U.S. electric vehicle maker’s shares reshuffles the global market. The change was driven by Tesla’s stock value, which has more than doubled in value in the last three months.
On Wednesday, the company’s market capitalization passed $100billion for the first time in its still young history, passing Volkswagen, the previous second-place company with a market capitalization of $99.4billion.
Tesla became the world’s second most valuable car manufacturer by market capitalization, passing $100billion in outstanding shares owned
During the rally, Tesla leapfrogged more established global rivals: Honda, BMW, General Motors and Daimler. Toyota still holds top position in the global car market, with a capitalization of $233billion.
Tesla passes Volkswagen to become world’s second most valuable car manufacturer, even as its sales are close to one-tenth of the German manufacturer’s
The recent gains have been fueled by a surprise third-quarter profit, progress at a new factory in China, and better-than-expected car deliveries in the fourth quarter.
The gains highlight growing confidence among investors about the future of electric vehicles and Tesla’s shift from a niche car maker into a global leader in cleaner cars. Yet, Tesla’s sales figures remain several times smaller than any of their current rivals, in spite of investor enthusiasm.
The electric vehicle manufacturer passed Volkswagen, and is currently only to Toyota, even though Tesla’s annual sales aren’t high enough to crack the top 20 Based on 12-month forward sales estimates, Tesla is expected to generate $31billion in revenue for 2020. During the same year, Toyota is is estimated to bring in $276billion, Volkswagen will bring in $283billion, and Daimler an estimated $191billion, according to estimates from Refinitiv data. In fact, Tesla’s sales estimates aren’t enough to even put it in the top 20 in the world.
Tesla delivers first China-made Model 3 sedans in just under a year
TIMELINE: TESLA, FROM STRUGGLING STARTUP TO MOST-VALUABLE US CAR MAKER
2003 – Founded as Tesla Motors by engineers Martin Eberhard and Marc Tarpenning
2004 – Elon Musk, a PayPal co-founder, engineer and technology entrepreneur who also started aerospace manufacturer SpaceX, along with J.B. Straubel and Ian Wright join Tesla as co-founders
2008 – The Roadster, the company’s flagship, all-electric car, is introduced at a price of $109,000 after federal tax cuts, and is considered a luxury item as the company. Investors pour more money into Tesla while a financially-strapped Musk is saved by a $1.6 billion NASA contract awarded to SpaceX
2009 – The Model S is unveiled as the company’s second production vehicle
2010 – Tesla pays $42 million to purchase an old vehicle production plant in California and goes public the same year at $17 per share
2012 – Tesla unveils a mid-size SUV known as the Model X as it begins selling Model S for $75,000
2014 – Tesla builds its ‘Gigafactory 1,’ in Sparks, Nevada, to build battery packs for its vehicles
2018 – Musk tweets he secured funding to take Tesla private at $420 a share, a substantial premium at the time over the company’s stock price, when he actually hadn’t and Tesla agrees to pay $20 million to settle claims it had not properly policed the co-founder’s social media posts. Meanwhile, unsold Tesla vehicles are seen parked in lots around the country
2020 – Tesla’s new plant in Shanghai promises to ramp up production of its new $35,000 Model 3 and after the company delivered 112,000 vehicles in the fourth quarter, beating expectations