- Title: Tesla becomes most valuable automaker in latest stock rally
- Date: 1st July 2020
- Summary: WESTFIELD, NEW JERSEY, UNITED STATES (JULY 1, 2020) (REUTERS VIA ZOOM) (SOUNDBITE) (English) WEDBUSH SECURITIES MANAGING DIRECTOR, DANIEL IVES, SAYING: "I think it's symbolic of just what test has become globally, that it's really started to transform the auto industry, and especially the EV market. I think more and more investors continue to value this more as a tech stock, or even a disruptive technology stock, rather than a traditional automaker. I think it's a sea change that's going on. It's definitely a bit of some scary prospects for the likes of Ford, GM and others that try to catch Tesla. And even in Europe, you look at Mercedes, BMW, Porsche, trying to catch Tesla, which right now continues to be miles ahead of competition on the EV market."
- Embargoed: 15th July 2020 20:03
- Keywords: Dan Ives Elon Musk Tesla Wedbush autos electric most valuable car company vehicle
- Location: WESTFIELD, NEW JERSEY, AND BUFFALO, NEW YORK, UNITED STATES / UNKNOWN LOCATIONS
- City: WESTFIELD, NEW JERSEY, AND BUFFALO, NEW YORK, UNITED STATES / UNKNOWN LOCATIONS
- Country: USA
- Topics: Company News Markets,Economic Events
- Reuters ID: LVA004CKZCFGN
- Aspect Ratio: 16:9
- Story Text: Tesla on Wednesday (July 1) became the highest-valued automaker as its shares surged to record highs and the electric carmaker's market capitalization overtook that of former front runner Toyota Motors.
Tesla shares gained 5% in early morning trade to a record of $1,133, boosting the company's market cap to $209.47 billion - roughly $6 billion more than Toyota is currently valued by investors.
Tesla is now worth more than triple the combined value of U.S. automakers General Motors and Ford Motor.
The shares' meteoric rise, up more than 163% since the start of 2020, highlight growing confidence among investors about the future of electric vehicles and Tesla's shift from a niche carmaker into a global leader in cleaner cars.
After several years of losses, Tesla has delivered three straight 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 financial year, ending on March 31, 2020. It reported net revenues of 30,226 billion yen, or roughly $281.20 billion, during that time.
Tesla, in comparison, ended 2019 with $24.6 billion in revenues, having delivered 367,200 vehicles last year. Chief Executive Elon Musk in the past said Tesla would deliver at least 500,000 vehicles in 2020, a forecast the company has not changed despite the coronavirus pandemic.
Tesla is expected to report second-quarter delivery numbers this week.
(Production: Aleksandra Michalska)
- Copyright Holder: REUTERS
- Copyright Notice: (c) Copyright Thomson Reuters 2020. Open For Restrictions - http://about.reuters.com/fulllegal.asp
- Usage Terms/Restrictions: None