Tesla, on Wednesday, surpassed Toyota in market capitalization to become the most valuable auto manufacturer globally.
Tesla is an American electric vehicle and clean energy company based in Palo Alto, California.
The company specializes in electric vehicle manufacturing, battery energy storage from home to grid scale and, through its acquisition of SolarCity, solar panel and solar roof tile manufacturing.
Tesla jumped as much as 4% to a market capitalization of $206 billion, while Toyota fell as much as 1% to a market capitalization of $203 billion.
Tesla is up 170% year-to-date. The company’s meteoric rise has led investors to pile into smaller electric-vehicle manufacturers like Nikola Motors and Workhorse, which owns a 10% stake in Lordstown Motors.
The takeover of the car industry by Tesla, highlights investors’ shift to rewarding technology-focused auto manufacturers that develop electric-powered vehicles and software.