Tesla recently displaced Germany’s Volkswagen as the world’s second most valuable automaker. The meteoric rise of the US-based electric-car maker has seen its market value peak at $100 billion. Tesla is now only second to Toyota in terms of most valuable carmaker.
The electric automaker’s stock has more than doubled in the last three months. According to financial research analyst FactSet, Tesla shares rose 4 percent to $569.56 on January 23, lifting its market cap to $102.7 billion. Tesla is now the first and only US-based automaker to reach a market cap of $100 billion.
Although Toyota still holds pole position with a market cap of $233 billion, Tesla managed to leapfrog established rivals like General Motors, BMW, Daimler, Honda and lastly Volkswagen, whose shares fell by 1.19 percent in German trading, putting its market cap at around $99.6 billion.
Some analysts claim that the rise in price reflects the company’s performance in recent months. Tesla had a strong third quarter in 2019, and the rally continued after the automaker begun deliveries from its factory in Shanghai, China. Tesla also said it had met its 2019 delivery guidance.
The Silicon Valley electric automaker claimed that it had shipped more than 3,67,500 cars in 2019, up by 50 percent from 2018. The numbers not only point to the company’s growth but the growing appeal of electric vehicles. Despite the rise, Tesla still remains a small rival to its competitors, not even appearing in the top 20 auto manufacturers, in terms of units sold globally.
According to Refinity data, the company’s sales are expected to reach $31 billion, which is a tiny slither of Toyota’s $276 billion, Daimler’s $191 billion and Volkswagen’s $283 billion. However, Tesla CEO Elon Musk could unlock the first piece of a $2.6 billion compensation package if the company sustains the $100 billion valuation.Get access to India’s fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code “GETPRO”. Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
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