Tesla has become the world’s most valuable automaker, beating Japan’s Toyota after its stock hit a record.
Shares of the electric car maker hit $ 1,134 on Wednesday morning before retreating, leaving it with a market value of $ 209.47 billion (£ 165 billion).
That’s about $ 4 billion more than Toyota’s current stock market value.
However, Toyota sold about 30 times more cars last year, and its revenue was more than 10 times higher.
Shares in Tesla have risen since the early 2020s as investors have begun to feel more confident about the future of electric vehicles.
That’s despite its founder Elon Musk erasing $ 14 billion from Tesla’s value in May after tweeting that its share price was too high.
After years of losses, the Californian firm has also delivered three profitable quarters in a row and maintained that momentum for the first three months of 2020 despite the coronavirus outbreak.
Toyota, however, remains a much bigger business in terms of sales.
The Japanese company sold 10.46 million vehicles in the year through March and posted revenue of 30.2 trillion yen ($ 281.20 billion).
Tesla ended 2019 with sales of just $ 24.6 billion, having delivered 367,200 vehicles last year.
However, investors are excited about the potential of the American firm, believing that it could dominate the future electric car market.
Analysts at stockbroker Jefferies said the company remained “significantly ahead of its peers in product range, capacity and technology.”
Reflecting that, the company is now also worth roughly three times the combined value of American rivals General Motors and Ford.
Musk said Tesla will deliver at least 500,000 vehicles in 2020, a forecast that the company has not changed despite the coronavirus pandemic.