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While Tesla has exceeded Toyota on market value, it is still falling behind the Japanese company by a wide margin on actual car production. Tesla stock closed at $1,119.63 on July 1. After-hours, it added another 1.55% to reach $1,137.00.
On Wednesday, Tesla Inc (NASDAQ: TSLA) surpassed a new milestone as its market value was larger than that of Toyota Motor Company (NYSE: TM) for the first time ever. In other words, Tesla became the most valuable automaker in the world. Now, Tesla is worth more than triple the combined value of General Motors Company (NYSE: GM) and Ford Motor Company (NYSE: F).
Tesla stock that has been generally bullish the whole year, rose by 5% in early morning trade to hit a record of $1,133. As a result, its market cap totaled $209.47 billion, roughly $6 billion more than investors are currently valuing the carmaker.
Tesla and Toyota
In January, Tesla became the world’s second-most valuable automaker in January when it topped Volkswagen AG. In May, Tesla briefly surpassed Toyota, but the latter retook the lead to keep it until Wednesday.
While Tesla has exceeded Toyota on market value, it is still falling behind the Japanese company by a wide margin on actual car production. For the Q1 2020 that ended on March 31, Tesla produced about 103,000 vehicles. They included 15,390 Model S and X and 87,282 Model 3 and Model Y vehicles. Meanwhile, Toyota manufactured 2.4 million vehicles in the same period.
Tesla Stock’s Rally
This year, Tesla stock has seen an incredibly wide range of prices. Having started at just $430.26 per share in January, TSLA stock had a bullish month ahead. Then, in March, when coronavirus pandemic seriously affected the whole market, Tesla shares tanked below $400 level. Since then, the stock has been recovering and showing greatly advanced prices. After it broke $1,000, some Wall Street analysts revised their price targets for Tesla. For example, JMP Securities boosted their price target from $1,001.00 to $1,050.00 per share. Deutsche Bank did the same, but its figures changed from $850.00 to $900.00.
Some are warning to stay cautious. For instance, Cowen analyst Jeffrey Osborne said:
“We continue to be cautious on Tesla, but anything EV related is red-hot for investors now and there is a scarcity of ways to invest in the theme, thus we see the stock continuing to ‘work’ near-term despite our caution on competitive positioning over time and valuation.”
Year-to-date, Tesla stock is 167.64% up. With such growth, TSLA stock stands good chances of being included in the S&P 500. Besides, Tesla CEO Elon Musk is optimistic about the company’s Q2 2020 performance. As he said, the company will be able to avoid a second-quarter loss. If so, then Tesla stock may go even further.
On July 1, Tesla stock closed at $1,119.63, or 3.69% up. After-hours, it added another 1.55% to reach $1,137.00.