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Tesla overtakes Volkswagen as the company´s value soars to $100billion

Tesla overtakes Volkswagen as company´s value soars to $100billion

Tesla has been valued at more than $100bn, displacing Volkswagen as the world´s second most valuable carmaker.

Shares reached an all-time high on Wednesday, continuing its record run that enabled the company to surpass the combined value of Ford and General Motors (GM) earlier this month.

Over the past six months, Tesla shares have more than doubled with shares rising by another 8 per cent this week to $591.78, making the business second only to Toyota which has an overall market valuation of $230bn.

The company´s decision to open a factory in Shanghai enabled Tesla to reach its production goals, with some analysts predicting that this is a main factor for the significant price increase. Investors expect that the new factory will act as a springboard that will allow the business to expand more in the Chinese market.

This month, the car manufacturer said that it had delivered 367,5000 cars in 2019, up by 50 per cent from the previous year.

Analysts and investors have re-set their profit predictions for the Tesla amid stronger-than-expected quarterly delivery figures, the ongoing expansion of production facilities and a more disciplined approach to communications from Elon Musk.

This month, the manufacturer is expected to report its latest quarterly results to investors, which will be a major indication as to how it is expected to perform this year as the company is yet to make an annual profit.