- Tesla has just overtaken Toyota to become the world’s most valuable company in terms of market value.
- The American automaker also saw a surge in its share prices as it breached the $1,000 barrier.
- This comes as several automakers are reporting losses due to the coronavirus pandemic while Tesla appears to be doing fairly well.
It has been a very good day for tesla in the stock market as the company’s individual share is now priced at over ,000. The cost per share currently stands at $1,009 on the NASDAQ index. Though one may argue that Tesla makes more than just cars, it’s no secret that a bulk of the company’s revenues is still generated by selling automobiles. Thus, the distinction of being the world’s most valuable company appears to be pretty apt.
Tesla has been seeing growth in its share prices over the past few years. The company saw its fortunes dialled back to some extent after seeing a significant fall in share prices back in 2018. However, the company has since recovered in pretty good fashion and has now overtaken Toyota to become the most valuable company in the market.
The rise in share prices drove up Tesla’s market valuation to 4.85 billion, thus swaying past Toyota comfortably which is currently valued at 8.89 billion It’s worth pointing out that Tesla’s valuation was driven up partly due to the fact that other automakers are performing poorly since the start of 2020. Ford is expected to report losses for this quarter in excess of $5 billion. Toyota’s market value, meanwhile, has shrunk by 7% since the start of the year.
It will be interesting to see if Tesla (TSLA) will manage to hold on to this market lead over the coming weeks. There have been reports of dying demand for its automobiles, particularly the newly launched Model Y mid-range SUV. In a bid to encourage more people to purchase the vehicle, the company recently included the Model Y to its referral program in North America.
This is certainly good news for Tesla stock owners as the company continues to weather the storm despite the coronavirus pandemic shutting down most of Europe as well as the U.S.
Source: u/brandude87 (Reddit)
Via: Electrek