Tesla briefly became the world’s most valuable automaker by market capitalization in 2020.
Tesla overtook Toyota in market value on July 1, 2020, as its share price continued a dramatic rise. The comparison used the total value of each company’s publicly traded shares, not vehicle production, revenue, or profit.
Tesla’s valuation reflected expectations about electric vehicles, battery technology, software, autonomous driving, and future growth. Toyota remained vastly larger by annual vehicle production at the time, illustrating why market capitalization and operating scale are different measurements.
Tesla was founded in 2003 and delivered its first production car, the Roadster, in 2008. The company’s share price continued to experience major swings, so the identity of the most valuable automaker can change depending on the date and the definition of the comparison.