Tesla officially has a higher valuation than Toyota, Volkswagen and Honda combined thanks to a significant surge in the electric automaker’s stock price over the past week.
Toyota, Volkswagen and Honda currently sit at the second, third and fourth-most valuable automakers in the world, respectively.
However, while the three companies are among the largest car companies in the world, their valuation combined has fallen behind that of Tesla’s, which has gained nearly $400 in value in just one week.
On July 6, the company’s stock closed at $1,371.00. At the time of writing, TSLA stock was trading at $1,732.61.
Tesla’s market cap currently sits at $324.93 billion, while Toyota ($176.49B), Volkswagen ($80.83B) and Honda ($45.56B) are worth $302.88B combined.
TSLA has enjoyed a surge in value this year of more than 220% so far, providing exponential gains to its investors. This fact is especially impressive considering the company has experienced closures at both of its vehicle production facilities in Fremont, CA, and Shanghai, China, due to the COVID-19 pandemic.
The stock’s value has inflated primarily due to Tesla’s technological developments, improvements in battery capabilities, production efficiencies and delivery figures that have managed to outperform Wall Street’s estimations.
Tesla’s valuation goes far past its stance as an automaker. The company is involved in sustainable energy generation and storage, and its surge as a company focused on the longevity of the Earth and freeing its citizens from the dependence on deadly fossil fuels.
Tesla has been a leader in transitioning the massive worldwide automotive industry to a sustainable, electric-based sector that is both fun and great for the environment.
After the Model 3 was released in 2017, Tesla was officially recognized as a mass-market car company that offered premium, sustainable vehicles that most families could afford to purchase.