- Tesla overtook Toyota in market capitalization last week, making the electric car company the most valuable automaker in the world.
- Tesla had already surpassed General Motors, Ford, and Fiat Chrysler to become the most valuable automaker in the United States.
- But is Tesla really worth more than Toyota?
- Of course, no. Toyota has been extremely valuable for decades, while Tesla has only recently been considered exceptionally valuable by investors. Tesla must remain valuable for decades to genuinely surpass Toyota’s achievement.
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Tesla is worth $ 206 billion. Toyota is worth $ 203 billion.
But in 2019, Toyota sold just under 11 million vehicles, while Tesla sold … less than 300,000.
What gives?
It’s about the future. Investors are betting, in a big way, that Tesla will claim a price of $ 1,208 per share (the price at which the company’s shares closed on Thursday, July 2) in the future, growing and growing and growing a little more, offering an enviable profit margin to go along with increased income.
Toyota, meanwhile, is mature. Huge but old. Your growing days may have ended.
Still, it’s Tesla Really worth more than Toyota?
No This is why:
