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Tesla overtakes Toyota as world’s most valuable car maker

Tesla stock surged overnight in US trading, surpassing Toyota as the most valuable car maker in the world.


Shares of the American electric vehicle manufacturer climbed by five per cent in early trading to a record US$1133, giving the company a market value of US$209.5 billion. Toyota is valued at US$202 billion.

Despite Tesla having never reported a full year of profit and selling only 367,200 vehicles last year, investors regarded the manufacturer as being more valuable than Toyota.

Toyota sold 10.46 million vehicles and recorded more than 10 times the revenue of Tesla in 2019.

Three days ago, founder Elon Musk emailed employees of Tesla encouraging them to "go all out" in an effort to get the car manufacturer to break-even. In late June, Tesla placed last in a ranking of new-car quality.

Tesla stock has more than doubled in value since late January.

By market capitalisation, Tesla is now worth more than twice that of General Motors, Ford, and Daimler combined.

Tesla is hoping to be able to report four consecutive quarters of profit, which would make it eligible for inclusion in the S&P 500. If it succeeds, the company would be ranked around 20th, placing higher than Exxon Mobil, Netflix, and Coca-Cola.

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Ben Zachariah

Ben Zachariah is an experienced writer and motoring journalist from Melbourne, having worked in the automotive industry for more than two decades. Ben began writing professionally more than 15 years ago and was previously an interstate truck driver. He completed his MBA in Finance in early 2021 and is considered an expert on classic car investment.

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