Tesla has been steadily growing over the past few years. From launching a wide variety of models, including an upcoming electric pickup to opening a factory in China, the US-based electric vehicle manufacturer has certainly come a long way from where they started. However, it seems things can only get better for Tesla.

The company has now overtaken Toyota in terms of stock market value, making Tesla (essentially) the world’s most valuable automaker.

According to numerous reports, Tesla’s market value reached USD 209.47 billion (Php 10.4 trillion) with stock prices hitting a record high of USD 1,135 (Php 56,271) per share. As a result, they managed to overtake Toyota by nearly 5 billion which is currently valued at around USD 203 billion (Php 10 trillion). In comparison to other US automakers, the firm is now worth around three times the combined value of General Motors and Ford.

Tesla reached this new milestone not by selling cars though. In fact, the EV-builder only sold a fraction of vehicles when compared to Toyota’s sales figures in the 2019 fiscal year. Specifically, Tesla reportedly sold only 367,200 vehicles in 2019. Meanwhile, the Japanese giant sold around 10.46 million vehicles and posted revenues nearly 10 times more than the Elon Musk's electric vehicle manufacturer.

Instead, Tesla’s rise in value in the stock market is mainly due to investor confidence in electric vehicles. In particular, investors believe that the company could heavily dominate the electric car market in the not so distant future, citing a wide product range, production capability, and more.

It seems that the only way to go for Tesla is up. With the Cybertruck due to launch soon and production continuous even with the on-going pandemic, the company has the potential to grow even bigger. So if you happen to own some stock in Tesla, it may be good to hold onto those for now.                     

Source: BBC, Forbes