Tesla had (and still has) a great day on Tuesday since its stock is growing at a faster pace ever and is closer and closer to 00. At 3:10 pm ET the stock was growing by 21.21% to 5.The surge has been happening as soon as the market had opened, which means it had grown by almost 0 a share in just two trading sessions. The rise drove the automaker’s general value to more than 0 billion after it just got to 0 billion in value less than two weeks ago.Jesse Cohen, an analyst with financial markets platform Investing.com admits himself that this doesn’t have any connections to the real logic:“If you’re trying to apply logic to a move of this magnitude you’re wasting your time.”Panasonic Improving Its Issues with TeslaThere are a few factors why this happened. We already wrote of
Teuta Franjkovic considers the following as important: amazon, argus research, baron capital, bill selesky, gene munster, jeffrey sica, jesse cohen, loup ventures, Market News, News, panasonic, sica wealth management, Stocks, Story of the Day, tesla, tesla model s, tesla model x, tesla stock, tesla stock price, Wall Street
This could be interesting, too:
Nick Marinoff writes New York Suggests Two-Year Moratorium on Crypto Mining
Nick Marinoff writes Elizabeth Warren Attacks Fidelity for Allowing Crypto Retirement Investing
Nick Marinoff writes Luxury Enterprise Gucci Says “Yes” to Crypto Payments
Aayush Jindal writes Ethereum Price Analysis: ETH Could Nosedive Below K
Tesla had (and still has) a great day on Tuesday since its stock is growing at a faster pace ever and is closer and closer to $1000. At 3:10 pm ET the stock was growing by 21.21% to $945.
The surge has been happening as soon as the market had opened, which means it had grown by almost $300 a share in just two trading sessions. The rise drove the automaker’s general value to more than $160 billion after it just got to $100 billion in value less than two weeks ago.
Jesse Cohen, an analyst with financial markets platform Investing.com admits himself that this doesn’t have any connections to the real logic:
“If you’re trying to apply logic to a move of this magnitude you’re wasting your time.”
Panasonic Improving Its Issues with Tesla
There are a few factors why this happened. We already wrote of how on Monday, Panasonic said the business turned profitable for the quarter that ended Dec. 31, a quarter earlier than had been expected. The news comes after the U.S. electric vehicle maker reported its second successive quarterly profit last week, as vehicle deliveries hit a record. Tesla also said it would comfortably make more than half a million units this year, pushing its shares to new highs.
Billionaire investor Ron Baron who was one of the first investors in the company said he thinks Tesla can come to $1 trillion in revenue during the next ten years. His company Baron Capital holds around 1.63 million Tesla shares worth approximately $1.5 billion based on today’s stock price.
Argus Research analyst Bill Selesky was also one of the Tesla proponents saying that the stock will rise up to $808 when it was $556. He said that the main reason for growth will be a continuous demand for its Model 3 sedan as well as good sales for its more-expensive Model S and Model X vehicles.
The fast pace of the rise of Tesla’s stocks on Wall Street comes less than a week after the company reported better-than-expected fourth-quarter earnings and sales. The company said that its revenue in the fourth quarter of 2019 amounted to $7.38 billion. It shows a 2% rise if we compare the figures with those of the same period of 2018. And, yes, the results appeared better than market estimates. GAAP earnings per share fell 28% year on year to $0.58 but were still better than analysts had expected. However, net income fell 25% to $105 million. Adjusted EPS rallied 7% to $2.14.
Tesla Stock Success Reminds of Amazon’s Story in 2010
Managing partner with Loup Ventures, Gene Munster, commented on how Tesla’s recent performance on the stock market reminds on that of an Amazon back in 2010. At that time, said Munster, investors were sure that Amazon would deliver logical earnings because of the broad market of users that gave it a wide territory for growth.
“If investors continue to give a handful of companies the benefit of the doubt, Tesla’s market cap will likely move higher than its current (level) over the next five years.”
Shortening Helped the Rise
He also added one more thing is probably boosting Tesla’s stock run – a “short squeeze.” A lot of investors have borrowed Tesla’s shares hoping the stock price will fall. That made Tesla one of the most shorted stocks on Wall Street. However, as the shares kept rising, short-sellers had to buy those shares to cover their short positions. By doing so they helped the rise of Tesla stock.
“Given the trajectory of today’s move, it is likely that short covering is the primary factor in the move.”
Jeffrey Sica, director of Sica Wealth Management, stressed the advance in Tesla’s shares have “obliterated virtually every short position in Tesla stock,” adding that investors should not go crazy over this abrupt rise in stock price.
“Some typical Tesla analysts have begun to foam at the mouth with delusional excitement which successfully forced the shorts to cover. My advice is that investors sell into this rally”, added he.
Experienced creative professional focusing on financial and political analysis, editing daily newspapers and news sites, economical and political journalism, consulting, PR and Marketing. Teuta’s passion is to create new opportunities and bring people together.