Tesla overtakes Volkswagen as second most valuable automaker globally

American automaker Tesla Inc has overtaken Germany’s Volkswagen AG as the world’s second most valuable automaker behind Japan’s Toyota Motor, as the meteoric increase in the U.S. electric vehicle maker’s shares reshuffles the international market.

Tesla’s stock has more than doubled in value in these three months, with its market capitalization reaching $100 billion on Wednesday, a first for a listed U.S. automaker.

During the rally, its value has leapfrogged more established worldwide competitors: Honda, BMW, General Motors and Daimler. On Wednesday, it outshined Volkswagen’s $99.4 billion value.

Toyota continues to hold the top position with a market cap of $233 billion.

The latest gains have been fueled by an unexpected third-quarter profit, progress at a new factory in China and a higher amount of car deliveries in the fourth quarter.

Many investors remain skeptical that Tesla can consistently earn a profit, cash flow, and growth.

But the gains highlight increasing confidence among investors regarding the future of electric vehicles and Tesla’s transition from a niche automaker into a global leader in cleaner vehicles.

A look at its results reveals it has a long way to go before it can outshine larger rivals.

Based on 12-month forward sales figures, it doesn’t even appear in the top 20 names in the world. The company’s sales will reach $31 billion, way less than Toyota’s $276 billion, Volkswagen’s $283 billion and Daimler’s $191 billion.