Tesla shares surge, increases gap with Toyota as world's most valuable carmaker

  • Tesla's shares have risen more than 420% since the beginning of this year, turning some retail investors into millionaires.
Photo of a Tesla Model X electric vehicle. (REUTERS)
Photo of a Tesla Model X electric vehicle.

Tesla Inc shares continued their meteoric rise on Thursday, scoring yet another record high and further expanding the distance between the Silicon Valley electric carmaker and its traditional auto industry rivals.

Tesla shares rose to $2,290 in mid-day trading before leveling out at $2,240, the highest price since the company went public at $17 a share in 2010.

Tesla's shares have risen more than 420% since the beginning of this year, turning some retail investors into millionaires.

Also check these Vehicles

Find more Cars
Tesla Model S (HT Auto photo)
UPCOMING
BatteryCapacity Icon75 kWh Range Icon396 km
₹70 Lakhs - 1 Cr
View Details
Tesla Model 3 (HT Auto photo)
UPCOMING
BatteryCapacity Icon82kWh Range Icon 555 km
₹ 70 - 90 Lakhs
View Details
Toyota Camry 2024 (HT Auto photo)
UPCOMING
Engine Icon2487 cc FuelType IconPetrol
₹ 50 Lakhs
View Details
Toyota Bz4x (HT Auto photo)
UPCOMING
BatteryCapacity Icon72.8 kWh Range Icon405 Km
₹ 70 Lakhs
View Details
Toyota Glanza (HT Auto photo)
Engine Icon1197.0 cc FuelType IconPetrol
₹ 7.18 - 9.45 Lakhs
Compare
View Offers
Toyota Belta (HT Auto photo)
UPCOMING
Engine Icon1462 cc FuelType IconPetrol
₹ 10 Lakhs
View Details

While other carmakers are forced to invest billions to overhaul their internal combustion engine operations to produce battery-powered cars, investors are confident that Tesla can make the shift from a niche carmaker into a global leader in cleaner cars.

Tesla became the world's most valuable carmaker by market capitalisation when it overtook former front runner Toyota Motors Corp on July 1. The company now accounts for 41% of the total market cap of a group of 12 of the world's largest automakers.

Tesla produces only a fraction of the vehicles sold by established global carmakers, many of which are considered growth engines for their local economies.

Japan's Toyota and Germany's Volkswagen AG sold 10.46 million and 11 million vehicles, respectively, during the 2019 financial year. That compares to the 367,200 vehicles Tesla delivered in 2019.

Tesla has said it would deliver at least half a million vehicles by the end of 2020, less than 5% of Toyota's and Volkswagen's annual sales.

But Tesla withstood industry-wide fallout from the novel coronavirus pandemic and in July reported a second-quarter profit, clearing a hurdle that could lead to the electric carmaker's inclusion in the S&P 500 index.

First Published Date: 28 Aug 2020, 07:40 AM IST
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.