Elon Musk is a man of many undertakings and hobbies. Though we may still be waiting on his next rap song or the electric leaf blower he once promised, you can imagine that wherever he is in the world, he’s celebrating. The numbers trickled in slowly – as figures that follow dollar signs tend to do – but at the end of the trading day the fact was clear: Tesla is the most valuable automaker in the US And not only this, but the car company even dethroned Volkswagen to become the second most valuable car company in the world.
As Reuters reports, “Tesla’s stock has more than doubled in value in the last three months, with its market capitalisation piercing $100 billion on Wednesday, a first for a listed U.S. automaker.”
It’s surprising, given the tumultuous history of Tesla’s stocks, which seem to be in a constant state of flux depending on Musk’s actions. In 2018, they feel an estimated 6 percent after the CEO smoked a blunt with Joe Rogan. And just last year, there was the infamous Cybertruck debacle where, during the vehicle’s unveiling, Musk proceeded to do a live demonstration of the car’s shatterproof windows. And, as windows are prone to do, they shattered. In front of hundreds and an even bigger audience watching the live-stream, causing Tesla’s shares to fall as much as 4.1 per cent following the event.
But as all life is merely a case of resilience and bouncing back, so too did Tesla’s stock. Reuters reveals that the company has leapfrogged more established global rivals, including the likes of Honda, BMW, General Motors, and Daimler. And now, the car company has eclipsed VW’s $99.4 billion value.
The jump in value for Tesla is believed to be the result of recent gains fuelled by a third-quarter profit, along with progress at a new factory in China and car deliverers in the fourth quarter that exceeded expectation. And while many continue to remain suspicious of Tesla, adamant that the company won’t be able to sustain or consistently deliver profit, cash flow and growth, this new accolade only goes to boost confidence in the company. Investors now appear to be looking at the electric vehicles in Tesla’s arsenal as the future of transport.
With Tesla clinching second place, here are the eight most valuable carmakers in the world and where they sit on the extended podium.
Toyota, $340.8 billion
Tesla, $149.9 billion
VW, $145.2 billion
Daimler, $78.3 billion
BMW, $74.3 billion
GM, $72.6 billion
Honda, $72.6 billion
Ford, $52.1 billion