Tesla, the electric car manufacturer founded by Elon Musk, has seen its stock prices skyrocket to record highs amid a market rally that has seen the S&P 500 hit new all-time highs. In the last six months, Tesla’s share prices rose by 225%, making it one of the largest gainers in 2020.
The Tesla Stock Surge in 2020
The company’s stock prices first began to surge in February of 2020, just as the coronavirus pandemic began to spread beyond China, and global markets began to waver. Tesla’s stock price rose by 62% in the first quarter of 2020, despite the market setbacks brought on by the Covid-19 pandemic.
As of August 2020, Tesla was one of the most valuable companies in America, with a market capitalization of more than $360 billion. Tesla’s shares rose by more than 400% between January and September of 2020.
There are several reasons behind the Tesla stock surge. For one, the company has been delivering record car sales in the past year, despite the pandemic freezing economies worldwide. Additionally, the company has been accepted into several stock indexes, including the S&P 500, which paved the way for larger institutional investors to invest in the company.
Furthermore, Tesla’s profit margins are among the highest in the auto industry, thanks to its electric car technology, and a commitment to automation efficiency. This has led to the company’s stock prices hitting new highs in recent weeks.
Tesla’s Growth Outlook
Tesla’s outlook is positive as it continues to make strides in the electric car market. In 2019, the company delivered over 367,000 electric vehicles and is expected to deliver about 500,000 cars in 2020. The company has also announced plans to build a new factory in Texas, which should help it fulfill even more orders in the coming years.
Tesla has also been working to lower the cost of its electric vehicles in recent years. The company’s long-term goal is to make electric cars accessible to the mass market. By lowering the cost of entry for its electric vehicles, the company hopes to continue growing its market share.
New Technologies and Markets
One factor contributing to Tesla’s stock surge is the company’s vertical integration. Tesla designs, manufactures, and sells electric vehicles, as well as the batteries that power them. The company has also invested heavily in self-driving car technologies, opening up wholly new markets for the company.
Another area of innovation for Tesla is solar energy. In 2016, Tesla acquired SolarCity, a solar power company, as part of its plan to become a leading player in the renewable energy market. Tesla is now selling solar panels and batteries for residential and commercial use, allowing customers to produce their electricity, pushing towards a clean energy-dependent society.
In conclusion, Tesla’s stock prices have been soaring in recent weeks, hitting new all-time highs. While the company has been hit by the coronavirus pandemic, it has managed to survive and thrive through innovation and strategic moves in the market. Tesla’s outlook is positive, with the company set to continue delivering record sales and expanding into new markets. As we move to a cleaner future, Tesla is positioned to be a key player in the electric vehicle, renewable energy, and self-driving car markets.