After starting the year at $430, Tesla stock rose dramatically by nearly 80% in January. Six months into the year, they now stand at more than $1,000, higher than any other auto player.
For most automobile manufacturers across the globe 2020 hasn't been a great year so far. But that isn't the case for Tesla. The EV manufacturer’s share price has now breached the $1000 mark and surpassed Toyota to take the top spot and making it the world's most valueable carmaker. In fact, it has risen by nearly 9% over the last two days after CEO Elon Musk confirmed that Tesla will enter into development of commercial trucks. The company's significant rise in sales in China last month could also have had an impact on the share price.
This isn't the first time in the year when Tesla’s share price soared like on a trampoline. After registering sales of 3,67,200 units in 2019 – 1,00,000 more than 2018 – the company’s share price increased by an insane 80% in January. Towards the beginning of February, Tesla’s valuation exceeded the Nifty Auto Index and was second only to Toyota. The California-based carmakers stock price continued to rise in February until the company came under scrutiny over a fatal crash due to the Autopilot. The rapid spread of the coronavirus and the resultant shutdown of its factory led to a gradual, yet substantial impact in Nasdaq. In March it went down from roughly $742 to $481. The last 2 months have been good for the manufacturer as the stock price has risen from $454 on 1st April up to its current $1,025.
Also read - Tesla’s valuation exceeds the Nifty Auto Index