Tesla becomes most valuable car company in the world

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Tesla blows past Toyota with valuation of about $206.5bn

Tesla engineered its latest coup on Wednesday, becoming the world's richest car company while two of Detroit's old guard, General Motors and Fiat Chrysler, reported sagging vehicle sales amid the coronavirus pandemic.

Meanwhile, the lower sales at two of Detroit's Big Three reflected the hit from coronavirus, which depressed demand for cars for part of the quarter and prompted a shutdown of US vehicle production. Cox surveys indicated one third of potential car buyers planned to delay purchases"driven by general uncertainty in the market, civil unrest and continued unemployment concerns".At GM, sales plunged 34% in the second quarter from the year-ago period to 492,484 vehicles, it said.

"After falling into a deep recession in March, the US economy has begun to recover as it reopens," said GM chief economist Elaine Buckberg. Conventional carmakers have ramped up their online sales to include features such as delivering a car to consumers.

 

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