Tesla becomes world's second most valuable carmaker

Tesla becomes world's second most valuable carmaker
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Tesla is now the second most valuable car company in the world after overtaking Germany's Volkswagen.

On Wednesday, market capitalization for Elon MuskElon Reeve MuskThe Hill's Morning Report - Presented by Facebook - US virus deaths exceed 100,000; Pelosi pulls FISA bill The Hill's Campaign Report: Trump ramps up attacks against Twitter SpaceX postpones manned mission to space station amid weather concerns MORE's company broke $100 billion, a first for a listed U.S. automaker, Reuters reported.

The surge in stock value has allowed Tesla to overtake several of its more established competitors. It is now second only to Japan's Toyota, which has a market cap of $233 billion.

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But even with its stock gains, many in the auto industry are skeptical that Tesla will be able to consistently increase its profits.

Forward sales estimates indicate Tesla will gross $31 billion over the next 12 months, a figure that would not put the company among the top 20 automakers when it comes to demand.

By comparison, Toyota is expected to make $276 billion, Volkswagen $283 billion and Daimler $191 billion, according to Reuters.

President TrumpDonald John TrumpTrump marks 'very sad milestone' of 100K coronavirus deaths DOJ: George Floyd death investigation a 'top priority' Lifting our voices — and votes MORE recently praised Musk, who is co-founder and CEO of Tesla.

Speaking this week at the World Economic Forum in Davos, Switzerland, Trump called Musk one of the world’s “great geniuses.”

In 2018, Musk was forced to step down as chairman of Tesla and pay a $20 million fine for allegedly misleading investors through his tweets.