Tesla experienced a nearly 40% increase in stock price over the course of 48 hours
The bulls are running and driving Tesla’s stock price through the roof, making Tesla news the stuff of headlines and front pages. With ever increasing supercharging stations popping up in large and small cities, it won’t be long before Tesla’s stock price goes even higher. Some predictions estimate that the company will be worth a trillion dollars in good time.
Why did Tesla’s stock go up today? Why is Tesla’s stock down today?
Lots of market related factors are at play here, the Dow Jones where Tesla is traded is at record highs driven by a superheated U.S. economy. The increase in Tesla’s stock price is partly to do with the number of Tesla’s one will see on the road today but also speculation that the company will continue to grow and hold on to the largest portion of the luxury EV market.
How much does Tesla’s stock cost?
At the time of writing this article, the stock price is roughly $750 USD/share. It’s up over one hundred percent since the beginning of 2020 and definitely echoes the late 1990’s dot com boom success.
Is Tesla profitable yet?
Yes, after many years of struggles and huge losses, Tesla is now in the black. They have fought off competition and prevented bankruptcy time and time again. With only approximately 100 million dollars in profits for the last quarter of 2019 Tesla is gaining a foothold. With the massive influx of their stock price for 2020, their profits are set to rise by huge margins.
Is Tesla overvalued?
This remains to be determined, most would say yes today with the rapid gains their stock has experienced but many have lost it all betting against Tesla. Recently a Reddit posting indicated that a troubled person had shorted Tesla’s stock position, expecting that the stock would definitely go down by now. Check out the post here:
This poor soul had risked all of his profits from the stock market on shorting Tesla and lost everything. As of today, there is no proof or financials that back the stock being overvalued hence the continued valuation.
Will Tesla stock go up more?
If speculators are correct that the company value will eventually exceed one trillion dollars, the stock will continue to go up. However, attempting to predict and time the stock market typically involves a rollercoaster ride of gains and losses usually with those that lack trading knowledge holding the bag at the end of it all.
Auto Blog Online’s take on Tesla’s stock price
Tesla is the leading luxury EV car manufacturer. With little competition in the EV industry currently, we would expect to see the stock price continue to rise. In the next three years, many new EV’s are going to come to the market though and this will take a bite out of Tesla’s stock price. Even by 2021 there will be many more competitors diving in so Tesla will have to consider aggressive pricing to keep the lead. All of this will equate to more opportunities for the average Joe/Jane to own a Tesla or other EV and if this is the only product of all this insanity we will rest much better.