Bloomberg News reports that the electric automaker’s shares surged around 41% within just 13 trading days. It was seen that at every session, it advanced remarkably. As such, with these market-run profits, around $240 billion was added to the market capitalization of Tesla.
18 months of dramatic moves
The longs and shorts of Tesla have experienced a lot of dramatic moves in the last one and a half years. The latest jump mentioned above comes on close heels after a couple of weeks of lousiness in April.
During this period, the company was on a spree of cutting prices repeatedly. It posted earnings that showed that the toll discounts had taken on profit margins. Before this episode, the stock had skyrocketed in anticipation of a March 1st investor day and Elon Musk’s new “master plan”.
Reasons of upheavals
It is also being said that many of the lows and ups in the past year were due to the Twitter saga that involved Elon Musk. He bought a stake in the microblogging site, and after that, he offered to acquire Twitter.
Although he wanted to withdraw from the deal, he ended up having to abide by the agreement. He acquired part of the money to get Twitter by selling tens of billions of dollars worth of stocks of Tesla.
Undoubtedly, Tesla has left a blazing trail that other automakers have been forced to follow of late. This scenario has offered a lot of excitement for the Bulls.
Incumbent following Musk
Just last week, it was announced by Toyota that they are planning to adopt the idea of a “Giga casting” system. This would simplify the structural front and the rear parts of the body dimensions in its future EV venture.
There cannot be a better complimentary endorsement of Musk’s manufacturing innovation that he brought forward many years ago.
What about General Motors and Ford?
Bloomberg News reports that before this Ford and General Motors took up Tesla for its invitation to use proprietary charging connectors. By the end of the decade, according to analyst Piper Sandler, Elon Musk may make an additional $3 billion annually. It would thus boost the EVs of the car maker.
Most of the developments mentioned are legitimate reasons for optimism, as reported by Bloomberg’s Esha Dey. It was also found that shares of Tesla were highly overbought similar to the market frenzy that occurred in November 2021.
