Tesla Passes Toyota In Value - More Than Triple GM And Ford Combined

Tesla Inc. on Wednesday became the highest-valued automaker as its shares surged to record highs and the electric carmaker's market capitalization overtook that of former front runner Toyota Motors Corp.

Tesla shares gained 4.1 percent in midday trading to a record of $1,124 after earlier reaching a record $1,135. The surge boosted the company's market cap to $209 billion -- roughly $6 billion more than Toyota is currently valued by investors.

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scenicbyway12 - 7/1/2020 3:15:13 PM

-1 Boost

The greater fool.

USNA1999 - 7/1/2020 4:29:48 PM

+3 Boost

Not selling my shares until it hits $1,500 and then the bubble can burst.

USNA1999 - 7/1/2020 8:41:37 PM

+2 Boost

FAQMD I only purchased a 100 shares of it at an average of $575. Just didn’t have the guts to risk more money in this kind of market environment. I bet that if I would have risked more the stock wouldn’t be performing this way, I would probably be losing ?? LOL

MDarringer - 7/1/2020 6:09:21 PM

-1 Boost

Valuation is not selling price.

CANADIANCOMMENTS - 7/1/2020 8:26:54 PM

+3 Boost

They should do a 3:1 stock split. The valuation would grow as the stocks would once again climb and then do another similar split. Dell went through a period like this in the mid 90's.

carloslassiter - 7/2/2020 7:55:52 AM

+2 Boost

Valuation is not selling price.
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I guess this replaces your super-accurate "they're going bankrupt!" predictions from a couple years ago?

MDarringer - 7/2/2020 9:04:03 AM

0 Boost

If you want to buy things at valuation, come on over. I'll rob you blind. Valuation is a guesstimate at potential beyond the physical assets of the company. NO ONE in business ever buys a business at its valuation price they start at the physical asset price. Right now, Tesla appears unstoppable. But let's say tomorrow a deep and dangerous flaw were to be discovered in their batteries. Valuation would collapse. Or let's say Elon were to be outed as an embezzler, valuation would collapse. The physical assets of the company would remain as is.

MDarringer - 7/2/2020 9:04:28 AM

0 Boost

And then Dell sputtered into irrelevance.

Truthy - 7/2/2020 9:52:34 AM

+1 Boost

MD has the most complete answer on this. I would add irrational exuberance. Elon has been a good carnival barker master of accounting tricks, but the company still has not made a full year profit, has a crushing debt load and a fleet of competitors coming online. The Ford Mustang Mach-E is a superior vehicle and GM's new battery technology looks to be a game changer.
Reality eventually catches up to everybody.

MrEE - 7/2/2020 11:03:30 AM

+2 Boost

Tesla clearly has the best EV engineering and production capacity. Their other big advantage is not supporting legacy ICE.

Toyota might be best positioned to survive the BEV transition, being they are utilizing their limited battery to ramp mass production of hybrid power trains. Having already optimized their ICE for this role and having extensive electrification experience, they are the best prepared legacy manufacturer for move to high volume BEV.

Valuation of Ford and GM signaling risk of bankruptcy in their future.

SanJoseDriver - 7/9/2020 6:12:13 PM

+1 Boost

Not a bad day.