Tesla overtakes Toyota: The Giant Showdown

Mr. Kiichiro Toyoda was leading a happy life, but soon he got a setback when he got to know, Elon Musk just took away the position of most valuable car company. Surprisingly, this electric car company took just 17 years to reach at the top. By January this year, this electric automaker company shell shocked everyone by becoming the most valuable automaker in U.S. by slamming the market cap up to $81.39 billion which is more than companies like FORD and GM.

Production Rate:

Though if we talk about the production rate, well it doesn’t matches with this new title. If we look over the stats, in 2019 the company manufactured around 367,500 electric vehicles, the count is very LOW! Though the company bagged all the records and came on the top. If we look over the stats of Toyota, the company manages to produce around 10 million vehicles every year. Though, they couldn’t retain their position in the world market.

Now, looking upon the stats of both the tycoons. Tesla shares banged up on Wednesday June 10th and noted a rise of 4% to $1,129.18. With this stand the market capitalization reached over $208 billion surpassing Toyota which holds the market value of about $202.74 billion. Analysts noted a huge competition as the stats were never stable. The game of rise and fall was way more engaging but in the end Elon Musk took the stats to a different level. Shares in Tesla have surged since the start of 2020 as investors have begun to feel more confident about the future of electric vehicles.

Role of Pandemic in the share market:

Now comes the situation of pandemic, there is no such sector left which isn’t affected by this human pandemic. All the business tycoons were framing the loss to their sectors but analysts just got baffled by noticing the rise to Tesla in this pandemic situation. If we talk about the traditional automakers they all have received a setback. Toyota’s shares have gone down by more than 12% since February, OUCH!!

Elon Musk’s aim to revolutionary battery technology:

After year of losses, this US firm has delivered around three profitable quarters, that too consecutively and maintained the form till the first three months of 2020 under the pandemic situation. Though, if we talk about the sales of the production, Toyota leads the list. Last year this Japanese company collected an outstanding amount of $281 billion.

So far, the total expected loss in the sales of automobile sector may cross the bar up to 15%, while the demand of electric cars is increasing at a commendable rate. With this, there is a ray of confidence that the sales of Tesla will be increasing at the same pace.

Who thought of an electric auto-motor company will someday defeat one of the biggest companies of the automobile sector.

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