Tesla Shares are on fire once again

Tesla Shares are on fire once again

By Aris Sevilla

In recent months, Tesla's stock has risen dramatically, with a year-to-date gain of more than 60%. A single share is now worth around $1,000.

The company's stock ended at $766.37 on March 14, down 36% from the year's high on January 3, the first trading day of 2022.

However, in less than three weeks, the stock has recovered most of its losses from the first ten weeks of the year. Despite closing slightly lower on Wednesday, shares have gained in 10 of the last 12 trading days since the low, rising 43 percent in that time frame alone. Tesla has announced that it will seek shareholder approval for a second stock split due to the rise. Since the company's first split in August 2020, shares have more than doubled in value.

Tesla Stays ahead of the competition

Tesla has defied an unpleasant industry trend, in which total manufacturing has been reduced significantly due to a scarcity of computer chips and other components.

In the next few days, Tesla is expected to release its first-quarter sales figures. (The corporation does not reveal the exact day it will do so ahead of time.) Global sales are expected to be similar to the 308,000 automobiles sold in the fourth quarter. That's a 67 percent increase over the first quarter of 2021.

That would also be in sharp contrast to the car industry as a whole. According to Edmunds and Cox Automotive, new car sales in the United States are expected to drop 15% from a year ago due to low supplies and record-high pricing.

Tesla’s shares rise again (Source)

Tesla share price has been on the run

Tesla’s shares have been on a tear in recent weeks as Elon Musk celebrated the company's first deliveries from its new Berlin facility, assuaging investors' concerns about the EV maker's ability to obtain essential permissions from the German government.

The Berlin facility held a celebration on March 22 to commemorate its first deliveries, just as Tesla's stock price began to rise. Tesla Austin factory which has already begun deliveries will have a similar celebration next week. The two facilities join the company's initial facility in Fremont, California, and its second factory in Shanghai, bringing the total number of car assembly plants to four.

Tesla Survived an unfortunate industry Trend

Tesla has defied an unpleasant industry trend, in which total manufacturing has been reduced significantly due to a scarcity of computer chips and other components.

In the next few days, Tesla is expected to release its first-quarter Tesla sales figures. (The corporation does not reveal the precise day it will do so ahead of time.) Global sales are expected to be similar to the 308,000 automobiles sold in the fourth quarter. That's a 67 percent increase over the first quarter of 2021.

That would also be in sharp contrast to the car industry as a whole. According to Edmunds and Cox Automotive, new car sales in the United States are expected to drop 15% from a year ago due to low supplies and record-high pricing.

Tesla sales are expected to increase even higher this year now that it has two additional facilities up and operating. According to Ives, Tesla should have an annual rate of over 2 million cars by the end of December.

Final Thoughts

On Tuesday, a rally in Tesla Inc. demonstrates how keen investors are to gamble on stock market winners despite a slew of hazards ranging from the Ukraine conflict to increasing interest rates and a slowing economy. Tesla shares rose 7.9% to their highest level since January 31, helping to propel the consumer discretionary sector to the top of the S& P 500 Index, surging 2.5 percent vs. 1.1 percent for the broader benchmark.

Tesla has constructed a new facility in Berlin, which is a positive move as automakers worldwide deal with supply shortages that are putting pressure on production schedules. Tesla may have just been at the right place at the right time. As the price of oil has risen since Russia invaded Ukraine late last month, it is profiting from increased investor interest in electric cars. Tesla market shares have risen 30% since the invasion on Feb. 23, while the consumer discretionary sector has up 10%, and the S& P 500 has risen 6.8% in the same time period.

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