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Tesla Inc. overtook Toyota Motor Corp. to become the world’s top automaker by market capitalization, financial data provided by FactSet Research Systems Inc. showed Wednesday (July 1).

The U.S. electric vehicle maker’s market value reached $207.7 billion, surpassing Toyota’s 21.72 trillion yen ($202), based on their closing stock prices Wednesday.

Tesla’s share price soared nearly fivefold over the past year, drawing investments amid growing expectations for its eco-friendly next-generation technologies.

Its stock price started trending higher following the introduction of the Model 3 electric sedan, manufactured at its Gigafactory plant in Shanghai, to China, the world’s largest auto market, earlier this year.

However, some market players pointed out Tesla’s stock price has been overvalued, as its global sales stood at around 360,000 vehicles last year, compared to Toyota’s 10.74 million units.

As for the outlook for Tesla’s share price, investors are concerned about any potential negative impact stemming from escalating tensions between the United States and China over Hong Kong.

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