(Bloomberg) -- The surge in Tesla Inc.’s shares so far this month moved Elon Musk’s company even closer to displacing Toyota Motor Corp. as the world’s most valuable carmaker. With a market capitalization of more than $190 billion, Tesla still has some distance to close to reach Toyota’s $210.5 billion valuation, which includes treasury shares, according to data compiled by Bloomberg. A rally of about another 11% in Tesla shares could see it claim the crown if Toyota holds steady, with Tesla already up 23% since the beginning of June. Tesla’s valuation comes despite a gulf in the scale of the two automakers. The Palo Alto, California-based maker of electric cars produced 103,000 vehicles in the first quarter, or about 4% of the almost 2.4 million made by Toyota. Tesla climbed another 9% Wednesday to close above $1,000 for the first time as Musk, the chief executive officer, told employees it was “time to go all out” and put its Semi truck into volume production. Wedbush Securities Inc. touted the “massive” opportunity for the company in China, with Tesla appearing to be on track to reach 100,000 deliveries from its Shanghai factory in the first year. Tesla became the world’s second-most valuable automaker in January, when it surpassed Volkswagen AG. It’s now worth more than twice the German rival, which said Wednesday it will meet an end-of-summer deadline to start delivering its flagship ID.3 electric car. Tesla’s recent rally has also been boosted by hype surrounding newly listed Nikola Corp., a battery-electric and hydrogen fuel-cell truck maker. Toyota, meanwhile, forecasts an 80% plunge in profit this year and expects it could take until the first half of next year before the auto market recovers to pre-pandemic levels. Shares in Toyota are down about 10% so far this year, trading about 17% lower than the record high hit in 2015. Toyota’s market valuation includes the 14.3% of shares that Toyota itself holds as treasury stock, worth around $30 billion. Tesla doesn’t hold any treasury shares, according to data compiled by Bloomberg. Read more: Betting Like SoftBank Drives Toyota’s Value Up by $19 Billion After pioneering gas-electric vehicles with the Prius hybrid, Toyota was late to shift to EVs, betting first on hydrogen fuel cells. The company is now making a series of high-profile investments in EVs, self-driving cars and futuristic cities. “My true mission is to completely redesign Toyota into a mobility company,” Akio Toyoda, CEO and grandson of the automaker’s founder, said last year. Tesla has 10 buy-equivalent ratings, while 12 analysts recommend holding the shares and 15 advising clients to sell, while Toyota has 13 buy ratings, 8 holds and 1 sell, according to data compiled by Bloomberg.
Yep tesla hype hype hype. Sells less than 500,000 vehicles a year and the market cap is worth more than GM F and fiat Chrysler combined!!!!! Toyota sells over 10 million cars worldwide to teslas 500,000 and they almost share the same market cap. That is baffling. But tesla bulls will tell you its a tech company. Highly disagree. Sorry
I agree with you on the hype part completely. But there is some measure of justification to it. Tesla has a huge jump on every other carmaker with EV's. The build quality is kinda crappy, but the drivetrains, software, ecu's and battery packs are legit industry leaders. And they have been collecting many millions of miles of performance data for over a decade from their customers. Which companies like Volkswagen have not. TSLA does have a significant jump on other carmakers. And ICE engines are on the way out.
Shouldn't be a surprise. Nikola is the world's largest truck maker... and hasn't sold even ONE Truck yet. (Won't until 2021)
When you buy a stock you're buying a pseudo futures contract essentially. You are betting on future performance.
Something strange about that company, lots of questions........just don't understand how a prototype of a truck can cause such euphoria to have a company valued as much as other car companies that have actual sales and actual product. And how come if Ford came out with news of doing exactly what nikola was doing would the stock not go from single digits to say $87 a share....
Yes yes yes....just like how the markets are always forward looking and that everytime.its forward looking its ALWAYS ALWAYS Positive...never ever NEGATIVE
eh...they've got SW, that's it. Automotive has been logging data for decades, it's not like data loggers were invented w/tesla. Batteries are basically off the shelf. Motors aren't that special either. GMC basically knocked it out of the park on their 1st attempt but both the chevy spark (Korea rebadge) and the Bolt just happen to be ugly as sin. mostly FOMO, but the company is well funded and they've been hiring some serious talent. Fuel cells are just all around better, save for the infrastructure.