Electric carmaker Tesla has reached a market valuation of $102 billion, propelling them ahead of Volkswagen to be the second most valuable carmaker in the world and the first U.S. carmaker ever above $100 billion.
Tesla now only trails the Japanese car manufacturer Toyota, which has a market cap two times larger at over $200 billion.
In the past months, Tesla has had an astronomical rise in market valuation, more than doubling its stock value over the last three months. The surge can be attributed to Tesla’s third-quarter profit last year, as well as new factories being built and quick car deliveries to customers. Tesla has also led the pack in electric car manufacturing, infrastructure and marketing, a growing market that all car manufacturers are looking to fill as quickly as possible.
The second-closest U.S. car manufacturer in market valuation is GM, currently sitting at $49 billion. Others, including Ford at $37 billion and Fiat Chrysler at $28 billion, do have a sizable lead in production force compared to Tesla, and as they pivot to producing more electric vehicles, Tesla’s valuation could begin to drop if they fail to produce enough vehicles.