Tesla has become the most valuable automaker in the World — surpassing Toyota

What a monster week for Tesla! Let’s take a look at the deliveries, milestones, and the stock.


Tesla’s market cap has exploded and it has become the most valuable automaker in the world.

The company smashed through milestones, surpassing auto giants like Toyota in terms of market value. Shares are up a staggering 26% this week — and then there are the Q2 delivery numbers. Tesla crushed those as well even in the middle of a pandemic.

Tesla delivered more vehicles than expected this quarter — a total of 90,650. Of these deliveries, about 80,000 were Model 3s and Model Ys.



Tesla's-Model-Y
Tesla’s Model Y crossover to offer 482-km range, 7 seats (wired.com)

Tesla usually doesn’t break down how many of the deliveries came from the gigafactory factory in Shanghai China versus how many came out of the Tesla plant in Fremont California. Analysts were not expecting Tesla to deliver more than 78,000 vehicles this quarter because the plant in California was basically shut down for five or six weeks because of COVID-19.

Nonetheless, Elon Musk and his team were able to not only meet expectations but exceed them by a wide margin. Now, this sets up the question of whether or not Tesla can hit its guidance of delivering a half-million vehicles this year.

In order to do that, Tesla will have to deliver at least 322,000 vehicles over the next six months — challenging, not impossible — but definitely challenging.

tesla-electric-vehicle-charging-infrastructure
The Tesla Supercharger network of fast-charging stations was introduced beginning in 2012. The electric vehicle network consists of 12,011 individual Supercharger stalls at 1,422 locations worldwide, as of January 2019.

The better than expected delivery numbers caps a monumental week for Tesla and for its investors. This is a week where Tesla broke through the market cap of $207 billion dollars and in the process, Tesla has become the most valuable automaker in the World — surpassing Toyota’s $203 billion.

Toyota sold 8,958,423 cars worldwide last year. That’s almost 25 times the 367,500 cars Tesla said it cranked out in 2019. But Wall Street investors have decided Tesla is the better stock to buy.

Think about this, Monday was the 10-year anniversary of Tesla going public. In the last year, its market cap has gone up by more than 165 billion dollars. That’s a sign of just how optimistic investors are about the future for Tesla.

One reason for this is because Tesla is a pure-play on electric vehicles.

Almost everybody agrees with the fact that the future for the auto industry is with electric vehicles. Nobody’s quite sure if they’ll take off in five years, 10 years, 15 years. But when it happens, people are gonna want to be positioned with the companies that are best positioned in order to take advantage of that.

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