Tesla has become the world’s most valuable car company. On July 1, after Tesla’s stock reached an all-time high, Toyota became the most valuable company in the world, beating Toyota. The market capitalization of the company rose to $ 209.47 billion in intraday, with Tesla’s stock gaining 7.9 percent to $ 1,134. On July 1, Tesla’s market cap exceeded Toyota due to a stock surge.
The Japanese Carmaker was the most valuable company in the world with a market cap of $ 182.7 billion. But on Wednesday, Tesla overtook Toyota to become the most valuable company in the world.
Ironically, Toyota invested about $ 50 million in Tesla 10 years ago when the company sold its facility to Elon Musk in Fremont, California. Toyota later sold its shares to Tesla and made a profit.
Why there is a sudden surge in Tesla’s Share:
The surge in Tesla’s valuation is attributed to Elon Musk’s decision to increase the production of the Tesla Semi Commercial Truck. According to Reuters, Musk had sent an email to Tesla employees on this. He did not specify any time frame for speeding up the production of semi-trucks. Musk unveiled the prototype of the futuristic, battery-powered semi in 2017 when he said the Class 8 truck would be produced by 2018. Recently, he said that by 2021 the production of CMS will be on a large scale.