Tesla became the most valuable publicly traded automaker in 2020.
Tesla’s market capitalization surged as investors anticipated rapid growth in electric vehicles, battery technology, charging infrastructure, and software. The company’s shares rose sharply during 2020, lifting its valuation above established manufacturers such as Toyota and Volkswagen.
Tesla was founded in 2003 by Martin Eberhard and Marc Tarpenning; Elon Musk joined soon afterward as a major investor and became its chief executive. The Roadster, Model S, Model 3, Model X, and Model Y helped move the company from a niche electric-car maker toward mass-market production.
Market capitalization measures investor expectations as well as current production. Tesla’s valuation therefore became a subject of debate because it exceeded the values of companies producing many more vehicles. The ranking has changed over time as electric-vehicle shares and traditional automaker prices moved.