automobile news

Tesla beats Toyota to become valuable automaker for brief period

Tesla beats Toyota to become valuable automaker for brief period
Tesla beats Toyota to become valuable automaker for brief period

Tesla, an American EV and clean energy company, has recently reached an all-time high in its stocks and turned into the most valuable automaker across the globe.

The company’s stock recently increased by nearly 7.6% to $1,011.65, leading to the market capitalization and the intraday peak of around $189 billion. Its recent valuation of the stock increased was higher than that of Toyota for some duration. The Japanese automotive manufacturer, with $182.87 billion market capitalization, is currently the most valuable automaker across the globe. However, the recent surge signifies the possibility of Tesla to beat Toyota and rise to the top sometime in the near future.

Toyota had made a $50 million investment in Tesla when the company sold its Fremont, California facility to Elon Musk 10 years ago. Later, the Japanese company sold its shares in Tesla and made profits.

The recent surge in the valuation of Tesla can be attributed to the decision made by Elon Musk to scale the production of its commercial truck, Semi. The company’s founder reportedly informed the employees of the rise in Semi production. He announced the possible production ramp-up of the Class 8 truck by 2019 when he unveiled the futuristic, battery-powered Semi’s prototype in 2017. Most recently, he also announced that Semi is expected to go into volume production by 2021.

Musk’s recent announcement comes along the heels of the share price surge of Nikola Corp., its rival clean truck manufacturer. Nikola recently merged with VectoIQ, an electric & fuel cell truck startup, and reportedly began trading. The shares of Nikola have highly increased over the last week as the company’s CEO adopts social media platforms and interviews to promote the company’s electric pickup truck to the forthcoming Cybertruck of Tesla.

However, the company’s shares have recently fallen by around 17%, following the 122% hike recorded two days ago. It is currently planning to deliver a battery-electric Semi in 2021, followed by big rigs that are cell-electric in 2023.

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https://auto.hindustantimes.com/auto/news/tesla-beats-toyota-to-become-most-valuable-car-company-in-the-world-briefly-41591841756312.html