Who would have thought when they were founded in 2003 that Tesla would become the world's most-valued car-maker in less than two decades? Yet, here we are in 2020, amazed by the fact the American EV manufacturer surpassed Toyota, albeit for a brief period on June 10, 2020, to become the automotive brand with the highest market cap! This, ladies and gentlemen, is history being created.
Tesla's share prices have been rallying for quite some time now, as the car-maker announced successive quarters of profits after years of losing money. With prices rising above $1,000 a share, Tesla's valuation stood at a staggering $188 billion yesterday! With this, Toyota, the world's largest car-maker by volume, slipped to second position with a valuation that was just over $180 billion on the same day.
It's quite an irony Toyota invested in Tesla over a decade back and even jointly developed Battery Electric Vehicles briefly before going on to sell their stake. We can't help but think of the billions of dollars the Japanese car-maker lost by not retaining them.
Incredibly, Tesla overtook Volkswagen - valued just shy of $80 billion - just a few months ago! Is this meteoric rise of Tesla in the share market a sign of things to come?
Armed with a 'S3XY' model line-up, rapidly rising deliveries of the Model 3, the planned ramp-up of Model Y, the Semi beginning mass production end of the year and the crazy Cybertruck slated to join a couple of years down the line, you would be hard-pressed to bet against Tesla.
Here's the list of Top 10 car-makers by market cap, as of early hours June 11, 2020.
Source: reddit.com/user/brandude87
Take these stock prices with a spoonful of salt as they can, at times, be crazy. How else can you describe something that places Nikola - a start-up that hasn't manufactured a single automobile yet - at Number 11, ahead of industry biggies like Nissan, FCA and Hyundai?
Watch this space. Things could get really interesting over the next couple of years.
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