Tesla has officially become the world’s most valuable automaker, surpassing Toyota Motor Corporation on Wednesday morning. However, Tesla is much more than an automaker, and its success has a lot to do with its other sustainable projects.
Tesla now holds an over $185 billion market capitalization, meaning the total value of all of the automaker’s shares of stock is worth more than any other carmaker on Earth. Toyota now sits in second place, with its $178 billion market cap.
Interestingly enough, Tesla’s solidification as the most valuable carmaker is eye-opening simply because the company does so much more than build sustainable vehicles. Tesla has become a leader in energy storage and solar solutions, something that no other carmaker in the world can say. While car companies continue to chase after Tesla’s industry-leading efficiency and technology, its focus remains on accelerating sustainability as a whole, and not just through vehicle manufacturing.
— Elon's World (@ElonsWorld) June 10, 2020
At the time of writing, Tesla shares were trading a few dollars above the $1,000 per share mark. At that price, the market cap stands at $185.10 billion.
Tesla overtook German automaker Volkswagen for the second-most valuable carmaker label in February. Volkswagen currently sits in third with an $85.53 billion market cap.
TSLA stock has continued to rise amid rising production rates and sales figures in China, the world’s largest automotive market. However, developments in battery technology and rumors of an upcoming million-mile capable battery pack have helped the electric automaker’s stock price soar in the past months.
On the energy front, Tesla has ramped its Solar Roof to a 4 MW per week production rate. The company indicated in the Q1 2020 Update Letter that this is enough for 1,000 homes. The implementation of rental and subscription services has also helped the company’s solar initiatives be affordable for more people.
On the morning of June 10, TSLA stock officially crossed the $1,000 per share threshold for the first time after rumors of a production push of the company’s Semi circulated. The talks, which were confirmed by company CEO Elon Musk, indicated production volumes would no longer be limited. The Semi was geared for initial deliveries in 2021, but Musk has decided to ramp up the manufacturing of the company’s commercial vehicle.
Meanwhile, Model 3 continues to dominate in nearly every country it is available. The car was the best selling electric vehicle in China in May, selling over 11,000 units during the month. In the United States, the Model 3 was the most popular vehicle in California through the first quarter of 2020.
After Tesla managed to reopen its vehicle production facility in Fremont, California, following the COVID-19 pandemic, the company has ramped up production of the Model Y, which has become the company’s main focus for the coming months.
Tesla is also looking to increase its production rate by opening up a series of new manufacturing facilities across the globe. Not only will the company open a new U.S.-based factory in the Central United States. Tulsa, Oklahoma, and Austin, Texas, are the two finalists for the new factory, with a decision expected to be made within the coming months.
Additionally, the company’s foreign presence is being ramped up. Not only is Giga Shanghai’s Model Y facility, known as Phase 2A, coming along in a timely fashion, but Tesla’s construction crews also recently broke ground on Giga Berlin in Germany. Tesla plans to manufacture half-a-million vehicles a year in Germany, and rumors have even suggested another European production plant will be built somewhere in the United Kingdom.
Tesla is riding a wave of momentum that has taken it from a small, likely unsuccessful car startup that was plagued with issues in 2008, to the most valuable automaker in the world in 2020. Not only has Tesla established itself as the leader in American EV manufacturing, but the company has launched itself into an international powerhouse that has combined electric mobility with sustainable energy solutions to become an international sensation.