American electric vehicle manufacturer, Tesla has recently dethroned Toyota for the title of the most valuable automaker in the world. Reportedly, this development comes after five months when Tesla was the second most valuable auto manufacturer in the world.

According to reliable sources, the EV maker’s shares, which have multiplied since the start of 2020, recorded a rise of 3.5 percent, valuing the firm’s market capitalization at $207.2 billion. This valuation is almost $5.3 billion more than the ongoing market stock value of Toyota, which is currently at $201.9 billion.

Tesla had manufactured 103,000 automobiles within the first quarter of 2020, which is almost 4 percent of Toyota’s 2.4 million vehicles manufactured during the same period. However, this exponential rise in the valuation of Tesla’s stock since the first quarter of 2020 has contributed to the fact that the EV maker’s investors have started to feel more confident about the firm’s future and the landscape for electric vehicles in the coming years.

Back in January, Tesla had managed to overtake German automobile giant, Volkswagen in market value. As of now, Tesla’s worth is twice than the German car maker’s current valuation. Nevertheless, Toyota still is a way larger business on the basis of sales.

A March report claim that the Japanese automaker sold nearly 10.46 million vehicles and had registered revenues around 30.2 trillion yen ($281.20bn). Comparing it with Tesla, the company had delivered only 367,200 vehicles worth $24.6 billion in 2019.

As a result, Tesla is now worth nearly three times the amalgamated value of its US competitors Ford and General Motors. In a recent press interview, Tesla CEO Elon Musk announced that the company will deliver almost 500,000 vehicles throughout 2020, a prediction that has not been changed by the company despite facing a slowdown due to the coronavirus pandemic.

Source Credit: https://www.bbc.com/news/business-53257933