Toyota was finally dethroned as the most valuable automotive company in the world when Tesla slipped and made a haul of over 7 billion dollars over Toyota’s $173 billion mark with Tesla’s $180 billion.
Elon Musk was a controversial figure this COVID-19 season when he demanded that his automotive company be allowed to start working when he saw other car companies kickstart post-COVID 19, landing him in hot water when his factories were running in the same manner they did with simple masks on his employees. The electric-car company earned nothing the whole COVID-19 season but with the bold move by Elon Musk, he took over the stock market when Tesla’s stock increased by 4% at $1,000 a piece putting the company’s valuation at $209 billion, which over steps Toyota’s tight grip fo the stock market whose valuation was on $205 billion, just short of $4 billion in a close run.
The mark up for Tesla’s valuation spelled immediate dividends as Tesla is rumored to be holding a valuation of $1 trillion due to the demands of the electric vehicles to soar as gas prices fluctuate and push Tesla’s cars to the forefront in America and around the world, even in Japan.
The battery-powered vehicle technology Tesla brings to the table boasts of utilizing cleaner fuels and efficient sources of energy with the famous “million mile” battery that can last up to 16 years, however, what makes the whole ordeal of Tesla’s masterful move in the mark was how Tesla has not even made one profit the whole COVID-19 season but the virus pandemic might be the key factor to shift all the demands towards reliable, electric-fueled cars where Tesla will be having the most control of the market.
“We see Covid-19 as an accelerator of the transition to EVs [electric vehicles] and renewables, from consumers and public policy,” stockbrokers at Jeffries analyzed.
“Tesla remains significantly ahead of peers in product range, capacity and technology.” they pointed out as the only other electric company that entered the fray was a small start up company by the name of Nikola. The coincidence was not lost on Elon Musk.
The ingenious strategy of Elon Musk, hower, is what stole the show as many know that Elon has an arrangement of how her is paid that is directly linked to how the company performs int he stock market with many analyst stating that he could be walking away with $55 billion dollars simply for the company’s step up.
Toyota being dethroned did change the status quo in the world as Toyota was also known for buying it’s own stocks in calculating its valuation while Tesla had no treasury and was creating raw numbers.
