Tesla passes Toyota to become the world’s most valuable automaker; market cap hits $206 billion

Last month, we wrote about Tesla’s after the electric car company’s stock eclipsed $1,000 per share valuing the company at $188 billion as of market close today. Today, Tesla officially became the world’s most valuable automaker by market cap, after the electric vehicle company’s market value surpassed Toyota’s for the first time.

Tesla is now worth more than GM, Ford, Ferrari, BMW, Nissan, Mazda, Aston Martin, and Fiat Chrysler, which have combined worth of $206 billion. Tesla to hit a new all-time high of $1,135, giving the electric company a valuation of roughly $206.5 billion, compared with Toyota’s valuation of about $202 billion.

However, while Tesla may have surpassed Toyota on market value, it still lags the Japanese automaker by a wide margin on actual car production. For the period ended March 31, Tesla said it produced about 103,000 vehicles — 15,390 Model S and X and 87,282 Model 3 and Model Y vehicles. During the same period, Toyota produced 2.4 million vehicles.

In addition, when looking at each company’s balance sheet, which includes debt, Toyota’s $290 billion value exceeds Tesla’s $252 billion, according to FactSet data through March. However, Tesla’s new market value underscores investor enthusiasm in the electric care company to revolutionize an industry that’s relied on internal combustion engines for more than 130 years.

In January, Tesla beat Wall Street expectations after crushing the fourth quarter Q4 2019 results with $7.38 billion in revenue. Tesla noted that 2019 was a huge turning point for the company. Thanks in part to consistent, strong demand for the Model 3, Tesla returned to GAAP profitability in the second half of the year, generating $1.1 billion of free cash flow for the year. The company also credits cost control across the board for its strong cash generation.

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