Electric automaker Tesla has managed to unseat Volkswagen as the world’s second most valuable carmaker. Volkswagen experienced a significant increase in share price, bringing its value to over $100 billion (€90.5 billion).
Media reports said this milestone paves the way for its CEO and co-founder, Elon Musk, to collect billions in pay pegged to hitting the $100 billion target.
Tesla’s share price has more than doubled since last October, at which point it reported an unusual quarterly profit.
On Wednesday, the electric automaker’s shares rose a further four per cent, allowing it to overtake Volkswagen as the world’s second more profitable carmaker.
The number one automaker in terms of profitability remains Toyota, which has a stock market valuation of over $230 billion (€208.1 billion).
Commentators regard Tesla’s increase in share price as a reflection of the company’s performance in recent months, barring Mr Musk’s embarrassing stunt while unveiling the ‘cybertruck.’ The recent opening of a factory in Shanghai and the success in meeting production goals have boosted the company.
Earlier in January, Tesla said it delivered over 367,500 cars last year, an increase of 50 per cent when compared with 2018.
When compared with other automakers, Tesla’s sales remain relatively small. Volkswagen delivered almost 11 million vehicles in 2019, according to the Guardian. Toyota reportedly sold over nine million in the first 11 months of 2019.
