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Tesla overtakes Toyota as the world’s most valuable automaker

Tesla has delivered three consecutive profitable quarters since the third quarter of 2019 and surprised investors with strong first-quarter deliveries despite the virus outbreak.

Tesla Inc became the highest-value automaker on Wednesday as its shares rose to record levels and the electric car maker’s market capitalization outstripped that of former striker Toyota Motors Corp.

Tesla shares gained 5% in the early morning trade to a record $ 1,133, increasing the company’s market capitalization to $ 209.47 billion, approximately $ 6 billion more than Toyota is. currently valued by investors.

Tesla is now worth more than triple the combined value of American automakers General Motors Co and Ford Motor Co.

The meteoric rise in stocks, an increase of more than 163% since the beginning of 2020, highlights growing confidence among investors about the future of electric vehicles and Tesla’s move from a niche automaker to a world leader. in cleaner cars.

After several years of losses, Tesla has delivered three consecutive profitable quarters since the third quarter of 2019 and surprised investors with solid first-quarter deliveries despite the virus outbreak.

Toyota, one of the world’s most profitable automakers, sold 10.46 million vehicles during its 2019 fiscal year, which ended on March 31, 2020. During that time, it reported net income of 30.226 billion yen, or approximately $ 281.20 billion.

In comparison, Tesla ended 2019 with $ 24.6 billion in revenue, having delivered 367,200 vehicles last year. Chief Executive Elon Musk has said in the past that Tesla would deliver at least 500,000 vehicles in 2020, a forecast that the company has not changed despite the coronavirus pandemic.

Tesla is expected to report second-quarter delivery numbers this week.

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