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Tesla takes Toyota’s crown as world’s most valuable carmaker

  • June 12 2020
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Tesla takes Toyota’s crown as world’s most valuable carmaker

By Grace Ormsby
June 12 2020

Elon Musk’s Tesla has reached a new milestone – its share price has streaked past $1,000 for the first time in the company’s history.

Tesla takes Toyota’s crown as world’s most valuable carmaker

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  • June 12 2020
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Elon Musk’s Tesla has reached a new milestone – its share price has streaked past $1,000 for the first time in the company’s history.

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According to eToro analyst Adam Vettese, the result comes off the back of a “strong day”, with Tesla shares closing the day on Nasdaq up 9 per cent.

“The gain means that Tesla is now the most valuable carmaker in the world, having surpassed Toyota,” Mr Vettese observed.

The rally was despite media reports that at least six of Tesla’s employees in California had tested positive for COVID-19, after Mr Musk reopened a facility last month against local guidelines.

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Another company boasting an improved share price, despite the pandemic, is Adobe.

Tesla

According to the eToro analyst, this is due to optimism around cloud-based services demand and the security of its subscription-based earning.

He highlighted that the share price for the tech firm is up more than 20 per cent this year-to-date – and almost 50 per cent compared with 12 months ago.

While analysts do expect Adobe to report an earnings per share figure that is in line with expectations from three months ago, Mr Vettese said investors will be “watching for revenue growth to justify the share price valuation”.

“Earnings reports have been hit and miss for the mainly tech stocks that investors have piled into in anticipation of increased demand driven by the pandemic, and even when firms have beaten expectations, the immediate reaction in some cases has still been a share price pullback,” he conceded.

Elsewhere, high-end athleisure brand Lululemon “has been an unexpected beneficiary of the pandemic”.

Mr Vettese said its share price has soared by 40 per cent this year-to-date and has attributed the boost to “loyal customers, a strong online presence and consumers turning to casual clothing options while stuck at home”.

While analysts are expectant of a dire quarter earnings wise, which is likely to push the share price down, investors are optimistic that the firm will bounce back strongly from store closures and return to a “multiyear winning streak”, Mr Vettese offered.


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About the author

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Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

About the author

author image
Grace Ormsby

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

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