On Thursday, Tesla Incorporation continued its advancing rally since the company made announcements for a 5 for 1 stock split, breaking records and increasing the gap between the US EV maker and other conventional carmakers like Toyota.
The company’s stock went $2,240 on Thursday, after touching the high of $2,290 mid-day, as compared to the firm’s share price in 2010, when it was launched, trading at just $17 per share. Moreover, alone this year, the US electric car maker’s stocks have risen more than 420% since January 2020.
Earlier on July 1, Tesla became the most valuable carmaker in the world, leaving the ex-pioneer Toyota Motors behind. Currently, the California based carmaker is valued over $418 billion, with the second most valued automaker standing at $220 billion. Further, out of the 12 biggest automakers, Tesla now accounts for 41% market capitalisation.
However, Tesla still delivers only a fraction of cars compared to the vehicles sold by well-established automakers. For reference, Germany based Volkswagen and Japan’s Toyota delivered 11 million and 10.46M automobiles in the 2019 financial year as compared to Tesla’s 367,200 vehicle sale. Many traditional global carmakers are the growth pillars for their respective economies.
Reportedly, Tesla has set a target of selling 500,000 vehicles by the end of the year, which doesn’t even count for 5% of Volkswagen and Toyota yearly sales. Tesla cleared a big hurdle which it needs to be a part of the S&P 500 index by reporting the Q2 earnings amid the coronavirus crisis. S&P 500 requires a firm to report a profit for four consecutive quarters.