It's a new record for Elon Musk's business. High-end electric vehicle maker Tesla on Wednesday became the most expensive global automotive company on the stock market. It thus overtakes Toyota, while selling far fewer cars than its Japanese competitor.
Tesla's market value stood at $ 207.7 billion in New York City at the close on Wednesday, more than Toyota's $ 202.5 billion. The action of the Californian company, listed on the Nasdaq, ended at 1,119.63 dollars (+ 3.69%), a new record.
6 months to double the market capitalization
It will only take Tesla a few months to double its market capitalization which reached $ 100 billion on January 22. In contrast to this meteoric rise, traditional American manufacturers, General Motors and Fiat Chrysler released poor sales figures in the 2nd quarter on Wednesday. Unsurprisingly, they fell by more than a third in the United States, where buyers were confined to their homes for a good part of the time in an attempt to stem the Covid-19 pandemic. However, the two companies noted a thrill in demand in June when the restrictions were lifted.
Tesla, which is also set to release sales figures this week, still plans to deliver more than half a million cars in 2020. Much less than Toyota, which sold nearly 10.5 million cars. 'last year.
A giant factory in Shanghai
What then justifies this important capitalization? The Elon Musk brand is notably associated with technological innovation and the protection of the planet, with its promise that its vehicles are and will remain the most ecological on the market. Tesla has also proven that it can mass produce a vehicle, despite the difficulties encountered with its entry-level model, the Model 3. In addition, the group is now directly present on the huge Chinese market with its giant factory from Shanghai which allows it to gain momentum and escape the vagaries of the trade war between Washington and Beijing.
This stock market record is not completely new, however. Several commentators had indicated in June that Tesla had risen to the number one stock market among car manufacturers. And Elon Musk, the fanciful boss of the company, had even "liked" a tweet congratulating him on this feat.
This time lag is due to the methods of calculating the market capitalization of a company, which corresponds to the number of shares in circulation multiplied by the value of the security at a given time. Like other Japanese groups, Toyota has stored a large number of shares in recent years, intended for buyback programs. These titles are not always taken into account when calculating the market value of the company. By not including them in the calculation, it is therefore possible to consider that Tesla has overtaken Toyota on the stock market as of June 10.
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