Tesla approaches milestone of world’s most valuable carmaker
- The US-based electric vehicle maker’s shares closed above US$1,000 for the first time this week, raising its capitalisation to more than US$190 billion
- It still has some distance to close to reach Japan’s Toyota Motor Corp, which has a US$210 billion valuation
Tesla’s valuation comes despite a gulf in the scale of the two carmakers. The Palo Alto, California-based maker of electric vehicles (EVs) produced 103,000 cars in the first quarter, or about 4 per cent of the almost 2.4 million made by Toyota.
Tesla’s recent rally has also been boosted by hype surrounding newly listed Nikola Corp, a maker of electric and hydrogen fuel-cell trucks.
Toyota, meanwhile, forecasts an 80 per cent plunge in profit this year and expects it could take until the first half of next year before the car market recovers to pre-coronavirus pandemic levels. Shares in Toyota are down about 10 per cent so far this year, trading about 17 per cent lower than the record high it reached in 2015.
Tesla starts delivery of made-in-China cars
Toyota’s market valuation includes the 14.3 per cent of shares that Toyota itself holds as treasury stock, worth around US$30 billion. Tesla does not hold any treasury shares, according to data compiled by Bloomberg.
“My true mission is to completely redesign Toyota into a mobility company,” Akio Toyoda, chief executive and grandson of the Japanese carmaker’s founder, said last year.
Tesla has 10 buy-equivalent ratings, while 12 analysts recommend holding the shares and 15 advising clients to sell, while Toyota has 13 buy ratings, 8 holds and 1 sell, according to data compiled by Bloomberg.