Tesla Inc. added more than $ 200 billion to its market valuation in the 1st three months of the year alongside what is likely to be the best start to the year for the stock in history.
Shares of Tesla are up 78 percent year-to-date. The company’s market value increased from $ 388 billion at the end of 2022 to $ 601 billion. This data is according to Nasdaq data on Wednesday. Shares of Tesla were up 2.5 percent to about $ 194 as the market headed closed Wednesday’s session.
Tesla CEO Elon Musk told investors during its 4th-quarter earnings call in January that customer demand for Tesla vehicles was more than its production. And that week, the stock had seen its best performance in 10 years.
However, analysts are still bullish despite a fast rise in Tesla stock this year. Tesla’s strong quarter had started well in the technology sector because investors expected high inflation in the rearview. Also, the Federal Reserve was predicted to soon pump the brakes on raising interest rates.
A good start to the year began after Tesla shares were miserable in 2022 when the company wiped out dollars 700 billion in its market cap. This also happened because Elon Musk’s Twitter takeover put investors off. This, the long-time analysts said, was creating a distraction for Tesla.
In December 2022, CNBC reported that shares of Tesla had fallen 28 percent since October 2022, when Elon Musk bought Twitter and became the CEO of the social media business.
Musk had sold billions of dollars worth of Tesla holdings to finance the Twitter takeover. And, also the takeover of Twitter was not smooth, and Musk saw a lot of friction due to the takeover. Similarly, during this time, the economic conditions also added to the pressure on Tesla’s share price. Tesla had also delayed mass production of the Cybertruck.
MarketWatch reported that the shares of Tesla roared 54 percent higher so far in the current year. According to Dow Jones Market Data, this has put them on track to log their biggest quarterly percentage gain since the 4th quarter of 2020.
Tesla’s market value is now at $ 593 billion from $ 389 billion at the end of 2022.
MarketWatch reported that much of Tesla’s momentum came early this year as investors poured back into its technology stocks. This came amid bigger optimism about the economy and the market. Tesla may have also benefited from important steps, like price cuts, that helped a lot in competition. As a result, now Tesla sees $ 200 billion added to its valuation in the year 2023.
About Tesla
Tesla, Inc. is an American clean energy and multinational automotive company. It is headquartered in Texas. Tesla designs and manufactures EVs or electric vehicles, like electric cars and trucks. It also produces battery energy storage from home to grid-scale, solar panels, etc. Tesla is one of the most valuable companies in the world, and it is, as of the year 2023, the most valuable automaker globally.