- 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: "It's another massive achievement for Musk and everything that Tesla has done in the EV market. And we're talking about a $1 trillion industry. It's only 3% penetrated today. Right now, it's Elon Musk's and Tesla's world, and everyone else is paying rent, when it comes to the EV market. And I think you're seeing the scarcity value continue to drive that stock higher, especially as deliveries look strong, even in a COVID-19 pandemic."
- 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: LVA002CKZCFGN
- 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)
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