Tesla rises to number 1 in global automakers’ market cap

Tesla’s market capitalization reached USD 2072 billion, exceeding the market cap of Toyota Motors.

Tesla’s stock price, which has been on a surge since the beginning of 2020, has stabilized since the end of March, when the corona 19 effect was large. However, it has since turned upward again and reached $1,025 on June 10, 2020.

Tesla’s share price continued to rise afterward, closing on July 1 at $1,119, more than 3.5% higher than the previous day’s stock price. As a result, Tesla’s market capitalization reached USD 207.2 billion, surpassing Toyota’s USD 201.9 billion, which was the leading automaker so far, ranking first in the world. Tesla surpassed Volkswagen in January and rose to second place, but continued to grow afterwards and finally surpassed Toyota on July 1.

About Tesla’s leading CEO Elon Musk’s management skills, foreign press broke the rules of the existing automobile industry, including selling cars online for 10 years after revealing Tesla stock and building an assembly plant in California that is not suitable for costly automobile production. It was evaluated that it has shown an exceptional effect.

However, Tesla’s number of cars produced in the first quarter of this year was 103,000 units, less than Toyota’s 2.4 million units. Although Tesla’s corporate value has skyrocketed, some point out that there is still a difference between Toyota, the world’s largest automaker, which has built a reliable brand and affordable price based on massive production innovation.

With regard to Tesla’s brand power, Tesla’s position in the automotive industry is comparable to Apple, which has a strong presence despite its smartphone market share of around 15%. Just as Apple charges users at a premium price for its strengths, Tesla points out that its vertically integrated production system can deliver its user experience to customers. If Tesla can continue to grow while maintaining this mystery in the future, it is expected that it will be able to expect much higher returns than other companies. Related information can be found here .