Tesla Stock Soars by More Than $100

News about its battery suppliers and optimistic analyses helped lift the electric-vehicle maker’s share price Monday.

0 401

Tesla’s stock surged on Monday on news that lifted already-rosy investor sentiment for the electric-car manufacturer.

The company’s share price topped out at $786 — a record — just after midday before sliding slightly to end the day at $780, nearly a 20 percent gain from Friday’s closing price, $650.57.

The rise followed positive developments related to Tesla’s battery suppliers and a pair of optimistic analyst forecasts.

On Monday, Panasonic said its joint battery venture with Tesla had turned a profit for the first time in the final quarter of 2019, according to Reuters, while a Chinese manufacturer of electric vehicle batteries, CATL, said it had signed a supplier agreement with Tesla, which recently started delivering vehicles built at its Shanghai factory.

On Saturday, Ark Invest, an investment research firm known for its extreme optimism for the carmaker, said Tesla’s stock could reach $7,000 per share in 2024, while another analyst, Bill Selesky of Argus Research, on Monday upgraded his year-end forecast for Tesla’s share price to $808, from $556.

“Despite past production delays, parts shortages, labor cost overruns and other difficulties, we expect Tesla to benefit from its dominant position in the electric vehicle industry and to improve performance in 2020 and beyond,” Mr. Selesky said in a note on Monday.

After recording a loss of more than $1 billion in the first half of 2019, Tesla turned a corner in the second half of the year. Last week, it reported a $105 million profit in the final quarter of 2019, news that quickly lifted its stock price, which had been at $581 before the announcement.

The company’s share price has more than tripled in just three months, but that incredible run has done little to silence critics of Tesla and its chief executive, Elon Musk, who argue that the company’s fans are glossing over serious concerns about demand for its vehicles and its ability to ward off competitors.

Strong polarization among investors over Tesla’s true value has made it the most attractive target for short-sellers, who hope to profit from a steep drop in the share price.

Leave A Reply