For the first time ever, the world’s most valuable automaker isn’t one your grandfather would recognize.
Last week, Tesla TSLA, displaced Toyota for the top spot when it comes to market capitalization. After quadrupling the market capitalization of Ford and General Motors combined, shares of Tesla soared past $1,400 Tuesday. The stock has gained more than 227% in 2020.
Investors are still reacting to larger than expected second-quarter shipments which saw 90,650 cars shipped.
Despite the strong result, TheStreet’s Eric Jhonsa noted that Tesla’s strong valuation relies heavily on the future and what Tesla can produce in the coming quarters. “The company is pricing in quite a lot of future sales and profit growth, and is doing so at a time when there’s still quite a lot of near-term macro uncertainty,” Jhonsa wrote.
Will Tesla hold the stop spot and who is following at its heels?
These are the world’s biggest automakers by market capitalization as of July 7, 2020:
5. Daimler: $45.64B
4. Honda: $46.70B
3. Volkswagen: $71.019B
2. Toyota: $205.92B
1. Tesla: $260.65B
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