Elon Musk’s Company Tesla Is Now Worth More Than Disney, Coke And Toyota
Electric car manufacturer Tesla has overtaken Japanese car rival Toyota as the world’s most valuable automotive company, and it has even outstripped several other huge franchises.
Elon Musk’s company has successfully climbed to the top of the ranks, despite never actually making a profit, as the demand for electric cars soar.
It comes after Tesla’s shares climbed more than 4% on Wednesday, July 1, taking the company to a new record high of $1,120 a share. In turn, that gives the company an eye-watering valuation of $209 billion, soaring ahead of Toyota’s $205 billion.
Not only that, Tesla has also overtaken some of the biggest franchises in the world in terms of market capital, including Coca-Cola, Disney, Cisco and Exxon Mobil. There are now just 19 other companies in the S&P 500 worth more than Tesla.
Interestingly, Tesla is now worth more than PayPal, which was actually formed from the merger of another payments company co-founded by Musk, CNN Business reports.
Tesla’s success is even more incredible when you consider it is yet to turn over a profit. However, analysts have said the company looks set to become the market leader in battery-powered vehicle technology, as the demand for environmentally friendly electric cars increases.
According to The Guardian, analysts working at Jefferies believe the current health crisis could speed up the pace at which the world moves to adopt cleaner fuels.
A spokesperson said:
We see Covid-19 as an accelerator of the transition to EVs [electric vehicles] and renewables, from consumers and public policy.
Tesla remains significantly ahead of peers in product range, capacity and technology.
One of the biggest concerns stopping people from adopting these new technologies is a worry over a lack of charging points for cars. However, that concern could look set to be resolved as experts from Tesla’s Chinese supplier Catl work on the so-called ‘million-mile’ battery,which could last up to 16 years.
It goes without saying that this impressive feat is incredibly good news for Musk, who could in theory be handed a $55 billion bonus given the increase in market capital.
However, Tesla isn’t the only electric car company to make its way into the S&P 500, as electric truck maker Nikola has also stormed into the list following a merger with an existing publicly traded blank check company.
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