Tesla world No 2 after share surge
Investors respond positively to healthy sales, more deliveries and production expansion
Tesla, the US electric engine vehicle company, has leapt to second place in the list of the world's most valuable car makers.
The doubling of the company’s stock price in the last three months has enabled it to overtake established rivals like General Motors and Volkswagen. Tesla is now second to Toyota in value.
Tesla’s value hit a $100 billion (£76.3 million, €90.61 million) peak on Wednesday, eclipsing Volkswagen’s $99.4 billion value. It still has a long way to go to catch Toyota as the Japanese maker has a market cap of $233 billion.
A number of factors have caused Tesla's shares to shoot up. These include a surprise third-quarter profit, higher than expected car deliveries in the fourth quarter of 2019 and unexpectedly fast progress in the construction of Tesla’s new factory in China. Some analysts, however, remain sceptical that Tesla can continue its meteoric growth. They warn that its earnings-to-valuation ratio is almost 10 times bigger than traditional car manufacturers.
Further Reading:Tesla worth more than GM and Ford together
Further Reading:Tesla unveils record deliveries in Q4