Tesla has had quite a wild year so far in 2019. Earlier this year, bearish sentiments had reached a feverish point, with shares of the electric car maker plunging below $200 per share. Now, however, the stock is reaching a new high as shares have gone up by over 74% in the past three months. Tesla broke past the $420 price point on Monday as shares continued to surge.
CEO Elon Musk made a tweet in light of this news, inserting a bit of cannabis humor as said “Whoa…the stock is so high lol,” referring to the 4/20 cannabis symbol and Tesla’s $420 stock price. While it’s a funny little tweet, it does signify a pretty big reversal for the previously embattled auto manufacturer. Investors will remember when Tesla announced they were cutting back all their retail locations, as well as some of the more difficult quarters where shipment numbers hadn’t met expectations.
At the same time, many of Musk’s more careless tweets have landed him in serious trouble with the Securities and Exchange Commission (SEC), having come to an agreement that someone else would review and monitor his tweets before he sent them out to the public. Coupled with the fact that many senior executives had quit over the past year, it’s understandable why many were worried about the company.
Since then, however, it appears that the company has staged a pretty strong turnaround. Back in October, Tesla surprised Wall Street by reporting a surprise Q3 profit, something which was completely unexpected by Wall Street analysts. In response to the news, shares of Tesla jumped by over 18% at the time of the announcement. While investors and analysts alike are wondering whether these figures are likely to stay consistent or disappear, there’s undoubtedly plenty of excitement for the next upcoming quarter.
There’s also plenty of excitement surrounding Tesla’s plans to expand its manufacturing operations in China, ramping up an existing facility in the country. The only possible problem is that other automakers are moving into the electric car market as well, which could easily be cheaper than Tesla’s automobiles, although perhaps without the same level of brand awareness that Tesla has.
Over the course of Monday, Tesla’s stock inched up another 3.5%, extending what’s already been a pretty impressive month. Since the beginning of the year, however, shares are up only 27%, which is roughly in line with the other major stock indexes in America. While it was definitely a turbulent year for the company, it seems that the holiday season will be a pleasant one for Musk and his company.
Tesla Company Profile
Founded in 2003 and based in Palo Alto, California, Tesla is a vertically integrated sustainable energy company that also aims to transition the world to electric mobility by making electric vehicles. It sells solar panels and solar roofs for energy generation plus batteries for stationary storage for residential and commercial properties including utilities. The Tesla Roadster debuted in 2008, Model S in 2012, Model X in 2015, and Model 3 in 2017. Global deliveries in 2018 were 245,506 units. Tesla went public in 2010 and employs about 50,000 people. – Warrior Trading News