Tesla Inc on Wednesday became the highest-valued automaker as its shares increased to record highs and the electric automaker’s market capitalization overtook that of former front runner Toyota Motors.
The automaker’s shares gained 5% in early morning trade to a record of $1,133, increasing the company’s market cap to $209.47 billion – roughly $6 billion higher Toyota is presently valued by investors.
Tesla is now worth over triple the combined value of U.S. automakers General Motors and Ford Motor.
The shares’ meteoric increased, up over 163% since the start of 2020, highlight growing confidence among investors regarding the future of electric vehicles and Tesla’s shift from a niche automaker into a global leader in cleaner cars.
After several years of losses, the automaker has delivered three straight profitable quarters since the third quarter of 2019 and surprised investors and observers with solid first-quarter deliveries despite the coronavirus outbreak.
Toyota, one of the most profitable automakers, sold 10.46 million vehicles during its 2019 financial year, ending on March 31, 2020. It reported net revenues of 30,226 billion yen (roughly $281.20 billion), during that period.
Tesla, in comparison, ended 2019 with $24.6 billion in revenues, having made deliveries of 367,200 vehicles last year. CEO Elon Musk in the past said Tesla would deliver at least 500,000 vehicles in 2020, a forecast the company has not changed regardless of the coronavirus pandemic.
The automaker is expected to report second-quarter delivery numbers this week.