Why tesla stock went up. Thats a 157 jump in one day. But no one knows why. Tesla is a polarizing stock with passionate investors on both sides.
Teslas 2020 performance represents a head spinning turnaround from 2018 when the stock price basically went nowhere and 2019 when its share price plummeted below 200 a share in may. While many on the media have speculated that the reason for teslas rise is primarily due to a short squeeze or retail investors buying in droves bolstering the price i believe its becoming more and more evident that teslas massive stock value increase is due to a fundamentals based re pricing of the stock as investors begin to better understand the fundamentals of the company. Teslas stock continues to rise to ridiculous heights.
Tesla stock closed up more than 36 or 72 a share to 54720. If too many short sellers buy the stock in tandem as is the case with tesla that can in fact create higher demand and drive share prices even higher known as a short squeeze. At times this makes tesla stock volatile.
Thats quite a leap from a low of 17897 on june 3 2019 but elon musks electric car. The dow jones industrial average was down 05 and the sp 500 was off 03. Teslas stock popped today.
And the stock is upa lot. The pandemic created the perfect scenario for a speculative stock like tesla to flourish. Tesla went into 2020 trading at around 430 per share before going on a parabolic rally that took prices to an all time high of 968.
At the time of this writing tesla shares are up another 20 with the stock now worth more than 937 per share. Its fundamentals dont come close to justifying its price. The price per share went up 97 to close at 52486.
Consider that its up over 150 in 2020 but it also fell more than 60 from. Tesla bulls are still feeling the buzz from a whirlwind rally that started with the companys fourth quarter earnings result on jan.