What could be more all-American than the newest — and largest, by market capitalisation — American car company busting through a fresh barrier for its surging stock price?
Tesla has gone from trading at about $US250 per share last year to, as of Friday, trading at $US375. The 13-year-old company is up 22% over the past 30 days alone. Since its 2010 IPO, it’s up almost 1,300%.
During this period of time, the carmaker has rarely notched a profit and is still selling less than 100,000 vehicles per year to the millions moved by its long-established peers. For what it’s worth, Tesla is also selling electric cars in a market that doesn’t want them — EV sales are only about 1% of the global market.
But people sure want to buy Teslas! The company has over 400,000 pre-orders for its forthcoming Model 3, slated to launch in July.
With positive sentiment about Tesla running very high ahead of that event, it doesn’t look as if there’s much to slow down the stock before Independence Day.
The stock has monumentally outperformed the S&P 500 since the beginning of the year — at a time when the markets were enjoying a “Trump Bump” post-election. It’s a rocket. And the obvious questions is, “How much momentum, with Tesla’s current business challenges, does the company have left?”
Get the latest Tesla stock price here.