Tesla’s replacement of Toyota, the world’s most valuable car maker, underscores investorenthusiasm for Tesla’s attempt to challenge the more than 130-year-old internal combustion engine car industry. Tesla’s stock has more than doubled since the start of the year, climbing 3.5 percent in the session on Wednesday to $207.2 billion, surpassing Toyota’s $201.9 billion.
Tesla produced 103,000 cars in the first quarter, accounting for only about 4 percent of Toyota’s nearly 2.4 million production, and The company’s brand is built on the price/performance and reliability of cars that come with massive production innovations.
Tesla overtook Volkswagen in January to become the world’s second-largest carmaker by market capitalisation. Its market capitalisation is now more than twice that of the German car giant.