[ad_1]
Elon Musk’s electric car company is one step closer to its market value of $1 trillion.
Tesla’s stock price rose to a record high on Friday, bringing the electric car manufacturer one step closer to joining an elite company with a market value of at least $1 trillion.
The stock rose 1.8% at one point, hitting a high of $910, and then closed at $909.68 in New York. This prompted the automaker led by Elon Musk to briefly exceed Facebook Inc.’s valuation.
The pioneering electric car manufacturer has risen 29% this year, ahead of the S&P 500’s 21% rise. At the same time, Facebook was hit hard on Friday after the cautious outlook of Snapchat’s parent company, Snap Inc., weighed on the stock prices of advertising-dependent technology companies. Facebook fell 6.1%.
After experiencing severe volatility in the first half of this year, Tesla’s stock price has been steadily rising since the beginning of June. Thanks to two strong quarterly results, it shows that the company’s performance in dealing with semiconductor shortages is much better than traditional automobile manufacturing. business. Especially the delivery volume and profit margins in the third quarter dwarfed all expectations, and the profit margins during this period left a deep impression on Wall Street longs and shorts.
Credit Suisse analyst Dan Levy wrote in a report on October 15: “Although Tesla is definitely affected by the semi-shortage, we have seen several reasons that can explain why Tesla’s sales are affected. The impact of the semi-shortage is less than that of other automakers.” Levy explained that because Tesla has written most of its own firmware, it can better adjust chip supply quickly if needed.
Although traditional automakers have vigorously promoted the development of competitors and several new companies have emerged, Tesla has produced two of the world’s best-selling electric vehicles-Model 3 and Model Y. With the popularization of electric vehicles, with the strong support of policy makers, Tesla is expected to become the main beneficiary. And this is exactly what investors are betting on.
Forex.com Global Market Research Director Matt Weller said: “The latest results absolutely cannot prove that Tesla’s current valuation is reasonable, but this has never been a bullish argument.” He said that traders have been buying the stock. Because it is expected that the company will occupy a dominant share of the fast-growing electric vehicle and self-driving car market in the next few years.
“These results do show that Elon Musk and the company have established a profitable car manufacturer, providing them with more runways to achieve their ultimate goal and grow into a sky-high valuation in the market,” Weller added .
[ad_2]
Source link