Tesla makes history
Tesla olgotech

Tesla makes history

This is something that has been on the horizon for some time now – the young electric car maker’s share price has not stopped rising and is now officially overtaking Toyota on the way to the top of the rankings

Elon musk

Even Elon Musk, the self-proclaimed CEO, said that the value of the shares is too high did not help – Tesla Inc. continues to gallop forward and break all laws and conventions regarding the relationship between the stock market value and practical economic performance.

There have been claims in the past that the $ 1,000-per-share price of the trendy electric car maker will be its glass ceiling for the foreseeable future, but in fact, a collapse in value during the global corona crisis has failed to prevent the highs now coming: Tesla’s share has risen to $ 1,135, More than 3 times its low point during March 2020 – giving the company a market cap of nearly $ 208 billion, making it the first car company with the largest share capital not only in North America but worldwide.

What about Toyota

Tesla’s market cap has overtaken Toyota’s market cap, with a current market cap of $ 22.11 trillion worth “only” $ 205 billion – which is astonishing mainly because the Japanese giant produces 10 million vehicles each year, while Tesla just celebrated its festive production this year Of its million vehicles, 17 years after it was founded.

If that’s not enough, it’s worth mentioning, too, that in 2019, the Toyota Group put in an equivalent of $ 275 billion and provided a net profit of nearly $ 20 billion, while Tesla provided $ 24.5 billion in total revenue with an $ 862 million loss in the bottom line.

Bubble

Tesla is expected to provide financial reporting for the second quarter of 2020 in the coming days, and it is estimated that results that beat analysts’ estimates will plunge its share price up again, enabling strong and significant first-place market value.

At the same time, the prevailing sense is that even if the near-term economic data does not live up to expectations, the young manufacturer will somehow continue to wink at the various investors without significant long-term harm.

Is it a balloon that exploded all at once, or is Tesla truly the future of the automotive world and is on the surefire way to become a technological leader while others are fading? Certainly, we will continue to monitor the major developments in this fascinating world.

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