Tesla became the world’s most valuable publicly traded automaker during its rapid stock-market rise in 2020.
Tesla’s market capitalization surged in 2020 as investors responded to strong growth in electric-vehicle deliveries, improving profitability, and expectations that electric cars would take a larger share of the global market. In July 2020, Tesla’s valuation surpassed Toyota’s, making Tesla the most valuable publicly traded automaker at that point.
Tesla was founded in 2003 and was originally known as Tesla Motors. Elon Musk joined as an early investor and became chairman before later serving as chief executive. The company’s Model S, Model 3, Model X, and Model Y helped expand its product range.
Being the most valuable automaker by market capitalization is not the same as producing the most vehicles. Traditional manufacturers such as Toyota and Volkswagen have generally produced more vehicles, while Tesla’s valuation reflected expectations about future growth.