Tesla Is Now Worth More Than Toyota, Coca-Cola, And Disney

Tesla, Elon Musk’s company, has made it to the top position in the industry even when it never really makes profits. This is attributed to increasing electric car demand.

On July 1, the company’s shares went up by over 4 percent, bringing its share price to $1,120. With that, Tesla is now worth $209 billion, surpassing Toyota’s valuation of $205 billion.

Apart from that, the company has taken over some of the world’s largest franchises regarding market capital, including Disney, Coca-Cola, Exxon Mobil, and Cisco. As of now, there are only 19 companies in the S&P 500 that have a higher valuation than Tesla.

Another interesting thing is that Tesla now has a higher worth than PayPal, which was created by merging another payments firm that Musk co-founded, according to CNN Business.

This milestone is even more impressive considering that it hasn’t made a profit. Nevertheless, analysts said the firm will likely become the leader in battery-powered vehicle technology with the rise in the demand for electric cars.

Analysts at Jefferies believe that the ongoing pandemic could boost the world to adopt cleaner fuels, The Guardian reported.

A spokesperson said:

“We see Covid-19 as an accelerator of the transition to EVs [electric vehicles] and renewables, from consumers and public policy. Tesla remains significantly ahead of peers in product range, capacity and technology.”

Meanwhile, some people still hesitate to adopt the new technology due to concerns over the lack of electric car charging points. But that concern may go away as Tesla’s supplier Catl is working on a million-mile battery that could last for 16 years. If this comes to real life, the company will have an exclusive competitive advantage in the market.

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