It's official, Tesla has become the world's most valuable carmaker, surpassing Japanese rival, Toyota.
As demand for electric vehicles (EV) keeps shooting up, it's clear to see how Elon Musk's company made the cut, even without making any profit ever.
Shares in Tesla went over 4% on Wednesday to over $1,100 a piece, bringing the company's valuation to $209 billion — higher than Toyota at $205 billion. This places Tesla over Toyota on the stock market, even when factoring in the different ways companies are valued in Japan and the U.S.
It says a lot that Tesla has achieved these numbers, especially as it's never actually made a profit. However, it's been pointed out that the company has huge prospects as a market leader when it comes to battery-powered vehicle tech.
Some analysts at Jefferies told the Guardian that perhaps the coronavirus pandemic has had a somewhat positive impact on the EV maker, as it could push forward the use of cleaner fuels around the world.
"We see Covid-19 as an accelerator of the transition to EVs [electric vehicles] and renewables, from consumers and public policy," they explained.
"Tesla remains significantly ahead of peers in product range, capacity and technology."
On top of this, there has been mention of a "million mile" battery that could last up to 16 years — something that Tesla's Chinese supplier Catl has been working on and which would minimize the cost of EVs.
Even back in mid-June Tesla was being praised for reaching a $184 billion market valuation on NASDAQ, ahead of Toyota's $179 billion at the time.
So in the space of two weeks, Tesla kept up the pace and remained ahead of Toyota.