The jump of shares in the stocks market means that Elon Musk’s electric car Tesla is now valued at $207 billion while Toyota saw it’s stocks dip by 1% which brings the Japanese company to $200 billion valuations.
Wednesday became the day when Tesla gained significant ground on Toyota and eventually overtook them in the market valuation after several weeks on gaining ground.
For context, General Motors, the largest legacy carmaker in the U.S., has a market cap of just $36 billion, and Ford was worth about $24 billion as of Wednesday.
With many car manufacturers like Mercedes, BMW, Toyota all getting into the electric car business, Tesla’s rise in fortunes should offer the other companies a clear indication of where the future of automotive is and why they should invest immensely in the sector.
Toyota has been one of those companies that invested early in the electric cars with their Prius hybrid in 1997 but have since been stalling in fully getting in the electric car business but with the significant steps that Tesla has made, the other big sector giants will be convinced to also invest in the era of electric cars.
However, one of the major reasons as to why the Elon Musk company has seen its stock go up despite having only 4 brands of cars unlike the other car manufacturers who have a fleet of variants that they have in the market is the fact that many believe the company will post a fourth straight profitable quarter making it eligible for inclusion in the coveted S&P 500 index, which could drive more cash to the California-based carmaker as investors put money into the broader index.
Also read: Tesla Adds Amazing Feature to All Its Cars
Author: Moses Echodu
Moses is an avid Sports and Tech enthusiast. He loves to keep up to date with all the latest information and research on some of the most compelling stories.