Tesla has overtaken Toyota as the world’s most valuable carmaker. The company’s shares soared over 400 per cent to reach a market value of $US210 billion (R3 trillion).
According to ABC, Tesla shares closed at $US1,208 (R20,532) per share last week.
What is interesting about this surge is that unlike other car manufacturers, Tesla doesn’t produce its product at the same level and has not reported a full year of profit since its founding in 2003.
Tesla has also been affected much less than other manufacturers during the COVID-19 pandemic, only reporting a 5% dip in sales for the second quarter compared to the previous year, according to the New York Times.
This has been attributed to a rise in interest from the Chinese market which has made up for the decrease in Tesla car sales in the US.
Much like all things on the stock exchange, these promising figures and Tesla’s sterling financial report from its first quarter have accelerated interest and therefore given more value to the company than was seen previously.
Tesla’s investment in electric vehicles has also been noted for this growth in its value. As BloombergNEF noted that adoption of electric vehicles is increasing while petrol cars have seen a decline since their peak in 2017.
This interest and investment in electric cars are only expected to increase, bringing expanded ranges and overall replacement of gas guzzlers.