Tesla Stock is On Fire

Credit: Tesla Press

There are no brakes on the Tesla train.

February has only just started, and the electric automaker is already on quite the tear. In just a few days, the value of Tesla’s stock has jumped from $650 to over $900, an unprecedented leap for just a couple of trading days. The company’s total market value is sitting comfortably at around $165 billion.

What is the cause for this sudden upward momentum? There don’t seem to be any new Tesla projects, but there have been some interesting rumblings within the company’s shareholders. Of particular note, Saudi Arabia’s sovereign-wealth fund, the Public Investment Fund, decided to liquidate their Tesla stock for Q4. That may not sound like a good thing on its own, but the PIF owned a lot of Tesla stock, which is now out in the open and ripe for purchasing. Though Tesla has not made any major moves in the last few days, this new surge in stock availability may be the instigating factor in their sudden increase in valuation.

Consultants remain skeptical of Tesla as a long-term investment, however. The stock will need regular price adjustments even if it does continue rising, and it would only take a single gaff like Elon Musk’s infamous radio show appearance to slam the brakes. In the short term, though, if you’ve got a few grand to burn, Tesla is the place to be.

Written by  
8 months ago
Article Tags:
· · · ·