It’s a sign of the times. Electric car manufacturer Tesla became the world’s most valuable carmaker last week, overtaking Toyota, despite never having made an annual profit.
In the past 12 months, Tesla shares have surged over 400 per cent to reach a market value of $US210 billion ($302 billion). In July last year, its share price was $US233. Last week, it closed at $US1,208.
According to the financial firm Refinitiv, Tesla is now trading at 69 times its estimated 2022 earnings. What’s behind the eye-watering rally? A broader improvement in the tech sector has helped.
A report that Tesla sold 11,095 Shanghai-made Model 3 vehicles in China in May, more than triple the number sold in April, has helped too.
But Tesla’s financial update last week was the spur. It showed the company just achieved its best first quarter for production and deliveries in its history, despite the COVID-19 lockdowns.
For the rest of this article: https://www.abc.net.au/news/2020-07-06/tesla-electric-cars-boost-raise-ethical-mining-questions/12424092