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Khushi Patel made post

What is the significance of the market cap of Tesla overtaking that of Toyota in the global auto industry?

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Anjana Aiyar answered.
1 month ago

During the week, the market cap of Tesla, an alternate fuel car company floated by Elon Musk, overtook the market cap of Toyota. This makes Tesla the most valuable auto company in the world. Tesla shares have more than doubled in the last one year overtaking Toyota’s $201 billion market cap in the process.

In a way, Elon Musk broke the rules of the game in a number of ways. He sold cars online and also assembled the cars in an expensive location like California, apart from his space ventures. Tesla produced 103,000 cars in the first quarter as compared to 2.4 million by Toyota. Tesla is worth twice as much as the century old Volkswagen of Germany.