LONDON: Last week, Tesla Inc. CEO Elon Musk liked a tweet that read, “Tesla is now officially the most valuable automaker of all the world!! Congrats!!”
The tweet showed a screenshot of a well-shared Google sheet created by Reddit user u/brandude87, listing the world’s top 25 automakers by market value. The sheet showed Tesla above Toyota Motor Corp. for the first time, with a market value of $183.7 billion versus Toyota’s $178.78 billion.
I caught an even more impressive shot pic.twitter.com/J0GKCZeNDa
— Eva Fox (@EvaFoxU) June 10, 2020
Everyone can agree that a company’s market value, or its market capitalization, is determined by the amount of shares outstanding multiplied by its share price. But not everyone agrees on what should be counted in those shares outstanding.
In recent years, Japanese companies have been expanding share buybacks to boost their returns to investors — and they have a tendency to hoard these shares, with Toyota, which has been aggressively repurchasing its own stock over the past six years, holding more than any other company in Japan.