Tesla shares are continuing to surge at an extraordinary rate and hit an intraday high of $961 on Tuesday before closing at $887.
Shares in the electric automaker have more than doubled since the start of the year and in the last two trading days alone have soared up from $650, a 36 per cent gain. The latest surge comes in part because Panasonic announced on Monday that its automotive battery venture with Tesla is in the black for the first time.
“Investors are now starting to believe that Tesla can make mass-volume electric vehicles, and automakers, battery makers and suppliers can make money from EVs,” Samsung Securities analyst Cho Hyun-ryul told Reuters.
The reasons for Tesla’s huge gains this year are varied. For starters, it dropped operating costs to about 7 per cent last year and upped deliveries by 50 per cent. In addition, it recently commenced production of vehicles in China and is working on a new Gigafactory in Berlin, Germany. Additionally, bulls believe Tesla will retain its grip on the battery electric vehicle market moving forward. Investment management firm ARK is so optimistic in Tesla’s future that it says its share price could soar to $7,000 in just five years if it’s able to increase profits, decrease costs, and establish a fully autonomous taxi network, The New York Times reports.
Elon Musk is making more money than anyone else thanks to Tesla’s skyward trajectory. Since the start of the year alone, the outspoken entrepreneur’s wealth has increased by more than $15 billion.