Tesla, the American electric vehicle manufacturer, has become the world’s most valuable carmaker as its TSLA share price rose to over $1,135. It now has a market value of over $206bn (£165bn), which means it has overtaken Japenese automaker Toyota with its market value of around $204bn (£163bn).
This is the result of consumer interest growing in electric vehicles (EVs), and investors feeling more confident than ever before in the ‘new’ era of mobility.
Read next: Will Tesla suffer as China cuts its electric vehicle subsidies?
One shouldn’t forget, however, that the two companies are vastly different in their overall production output per year and total revenue. Tesla, for example, produced 367,500 vehicles in the entirety of 2019, meanwhile, Toyota sits at over 10.3 million. Likewise, the Japanese automaker had roughly ten times the amount of revenue in 2019 as opposed to the American carmaker.
Buy a car phone mount on Amazon (Affiliate)
Yet still, Tesla remains superior in the eyes of investors. There are plenty of opportunities to be seized and Tesla seems to be continuously reaching new heights. The company’s CEO, Elon Musk, recently mentioned that Tesla will be increasing its production output in 2020 to over half a million vehicles a year. To think Tesla was outputting half that amount in 2018 is a sizable achievement in its own right.
This comes after Tesla expanded its production output to China – Tesla Giga Shanghai, also known as Gigafactory 3 was finish in autumn 2019. The production plant is expected to output 250,000 vehicles a year; whereby Giga Shanghai is dedicated to producing Tesla’s most affordable model, the Model 3, and its upcoming compact SUV, the Model Y, only.
Read next: What is an EV? Everything you need to know about hybrid and electric vehicles
Giga Berlin (Gigafactory 4) will be added to the mix in 2021, whereby this German-based factory will further bolster the company’s production output. It’s all positive in the eyes of investors and given most governments around the world plan to ban petrol and diesel vehicles by 2035 or a little later, there’s an onus on vehicle manufacturers to build EVs. Whose better equipped than the company that kick-started this entire global trend?
Read next: MG ZS EV review: An affordable all-electric SUV
It’s great to see a company like Tesla succeeding and it’ll be interesting to see how the market unfolds throughout the year. Question is: have you invested in TSLA shares or likely to jump on the bandwagon anytime soon? Let us know in the comments below or alternatively via social media: we’re on Facebook, Twitter, Instagram and YouTube.