Tesla overtook Toyota to become the world’s most valuable automaker by market capitalization in 2020.
Tesla passed Toyota in market value in July 2020 as its share price surged. The comparison measured the stock-market value of each company’s outstanding shares, not vehicle production, revenue, or profit.
Tesla’s valuation reflected investor expectations about electric vehicles, battery technology, software, and future growth. Toyota remained far larger by annual vehicle production and had a much broader established manufacturing network.
The ranking later changed as share prices moved, and other electric-vehicle companies also became important competitors. This is why “most valuable automaker” can mean highest market capitalization rather than the biggest manufacturer by units sold.