Over the last few weeks, Tesla’s stock has risen from $260 per share to $350 per share. It has resulted in a $13 billion increase in its market value. Tesla has had a very tumultuous year and even then it has managed to increase its stock, it is just amazing.
Tesla, Inc. is an American automotive and energy company based in Palo Alto, California. The company specializes in electric car manufacturing and, through its SolarCity subsidiary, solar panel manufacturing.
Most of Tesla’s success is courtesy of Elon Musk. The genius Elon Musk is a technology entrepreneur, investor, and engineer. He holds South African, Canadian, and U.S. citizenship and is the founder, CEO, and lead designer of SpaceX; co-founder, CEO, and product architect of Tesla, Inc.; co-founder and CEO of Neuralink; and co-founder of PayPal.
Courtesy the unexpected rise in stock, with 33.7 million shares, Elon Musk has made around $3 billions without doing any additional work whatsoever.
So what really happened with Tesla?
It has been a truly turbulent year for the electric car manufacturing company.
Tesla has faced a number of challenges this year, including concerns over its finances, ability to build cars at scale, and public comments attributed to Musk and Tesla. Now, the company is at an inflection point.
The third quarter was the most profitable in its history, beating Wall Street’s expectations. In upcoming quarters, Tesla will be under pressure to prove that it can maintain profitability and stay out of trouble with regulators as it ramps up Model 3 production, introduces new vehicles, and builds a factory in Shanghai.
Tesla has a long history of beating the odds. Musk has said he believed the company had around a 10% chance of success when it was founded in 2003. Since then, the company has won awards for its vehicles, built an enthusiastic fanbase, and watched its market value multiply day in day out.
Part of the company’s success can be attributed to 47-year-old Elon Musk’s rare gift for storytelling. Since taking over as the company’s chief executive in 2008, he’s outlined a vision for the company that extends beyond selling cars to transforming global energy grids. Investors have shown faith in Musk, which is why Tesla has been able to raise money without much difficulty despite posting consistent deficits.
How did a company that worth $44 billions made $13 billion in so few days?
It means a 33% increase in the market value of the company. That’s just extraordinary. Tesla’s third-quarter update 2018 is the main factor behind it. Reason being that the most important thing investors are looking for is the performance of the latest Tesla car named Model 3. This is the first quarter in which Model 3 has been consistently produced in large quantities of roughly four thousand three hundred units per week.