Tesla has beaten Toyota to become the world’s most valuable carmaker by market value, as the 10th anniversary of the electric auto group’s stock market entry approaches.
The electric carmaker’s shares have climbed fivefold during the past year, from $230 about 12 months ago to $1,100 on Wednesday June 1, taking the company’s market capitalisation to $205bn.
Toyota, the world’s second-largest single carmaker measured by output with annual production of more than 10m vehicles, was worth about $200bn on Wednesday after its Japan-listed shares fell 1.5 per cent to ¥6,656 ($61).
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Once debt is included, the Japanese group is still worth more at $284bn compared with Tesla’s $207bn enterprise value, according to data from financial data provider Sentieo.
While Toyota’s shares trade on a multiple that values the business at 16 times its earnings, Tesla’s shares trade on a multiple of almost 220 times the company’s profits, far above any other auto business.
While the electric group’s shares have almost tripled so far this year, values of established carmakers have fallen because of the impact of the coronavirus pandemic.
Toyota’s shares have fallen more than 12 per cent since early February, as it was forced to close factories and showrooms around the world. In May, the Japanese carmaker warned that operating profits could fall 80 per cent this year and that the decline in vehicle sales was likely to be “bigger than during the Lehman crisis”.
Although major carmakers from Volkswagen to PSA are releasing battery vehicles, Tesla is still expecting its overall sales to grow as the global market for electric vehicles increases.