Shares of electric car maker Tesla surged to record highs on Wednesday, closing up 3.69 percent at $1,119.63, giving it a market value of about $207.6 billion. Tesla shares rose 5 percent to a record $1,135 in early trading. Tesla’s market value now is more than three times that of U.S. automakers GM and Ford combined.
So far this year, Tesla’s share price has soared more than 163 percent, and in the past month alone, it has climbed more than 20 percent. This underscores the growing confidence in the future of electric cars, as Tesla is moving from niche carmakers to global leaders in clean cars.
After several years of losses, Tesla has made three consecutive quarters of profit since the third quarter of 2019. Despite the outbreak, strong deliveries in the first quarter of this year still surprised investors.
Wall Street is clearly optimistic about Tesla’s future growth and profit prospects. Many experts expect the world to turn to battery electric vehicles in the next decade or two, and Tesla is leading the revolution. So far, Tesla’s Model 3 is the most popular battery electric car of 2019, selling more than 300,000 vehicles.
If Tesla can maintain or expand its leading position in electric vehicles, the company hopes to do so by launching Model Y this year and CyberTruck next year, it could become one of the world’s largest carmakers by sales in the next decade or two.
While Tesla may have overtaken Toyota in market capitalisation, it still lags far behind the Japanese car giant in terms of actual car production. Toyota is one of the world’s most profitable carmakers, selling 10.46 million vehicles in the 2019 fiscal year ending March 31, 2020. The company reported net revenue of $281.2 billion for the same period.
By comparison, Tesla’s revenue in 2019 was $24.6 billion, with 367.2 million vehicles delivered. Elon Musk, Tesla’s chief executive, has said in the past that the company will deliver at least 500,000 vehicles by 2020. Despite the new crown outbreak, the company has not changed its forecast.
Tesla said it produced about 103,000 vehicles in the first quarter ended March 31, including 15,390 Model S and Model Xs, and 87,282 Model 3 and Model Y. Over the same period, Toyota produced 2.4 million vehicles. Tesla is expected to release new car deliveries for the second quarter this week.