Tesla overtakes Toyota to become most valuable automaker in the world
- Tesla has surpassed Toyota to become the most valuable auto manufacturer in the world on Wednesday.
- Tesla jumped as much as 4% to a market capitalization of $206 billion, while Toyota fell as much as 1% to a market capitalization of $203 billion.
- The Tesla takeover of the car industry highlights investors' shift to rewarding technology-focused auto manufacturers that develop electric-powered vehicles and focus on software development.
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Tesla has soared past Toyota in market capitalization to become the most valuable auto manufacturer in the world on Wednesday.
Tesla jumped as much as 4% to a market capitalization of $206 billion, while Toyota fell as much as 1% to a market capitalization of $203 billion.
Investors have bid up shares of Tesla as much as 12% over the past two trading sessions in anticipation of the company's second quarter delivery results. On Monday, Elon Musk sent an email to employees, cheering them on to finish the quarter strong in hopes of breaking even for the period.
If Tesla manages to turn a profit in the second quarter, it will become eligible to be added to the S&P 500 index, which would create immense demand for its stock as passive funds and ETFs tied to the index would be forced to buy Tesla shares.
Tesla is up 170% year-to-date. The company's meteoric rise has led investors to pile into smaller electric-vehicle manufacturers like Nikola Motors and Workhorse, which owns a 10% stake in Lordstown Motors.
The Tesla takeover of the car industry highlights investors' shift to rewarding technology-focused auto manufacturers that develop electric-powered vehicles and software.
