Tesla became the world’s largest automaker by market capitalization during the electric-vehicle boom.
Tesla’s market value surged during 2020 as investors anticipated rapid growth in electric vehicles, battery storage, software, and charging infrastructure. The rise made Tesla more valuable on the stock market than long-established automakers with much larger production volumes.
Tesla was founded in 2003 by Martin Eberhard and Marc Tarpenning; Elon Musk joined soon afterward as an early major investor and became chairman. The company’s best-known vehicles include the Roadster, Model S, Model 3, Model X, and Model Y.
Market capitalization measures investor valuation, not the number of vehicles produced. Traditional manufacturers such as Toyota and Volkswagen have often built more cars, while Tesla’s valuation reflected expectations about future growth and its position in electric-vehicle technology.