Monday Tesla stock hits $420 per share after Musk’s tweet

Tesla stock hit its all-time high $422.01 before Monday closing at around $419.22, up over three per cent and bringing the market cap of Tesla to greater than $75 billion. The stock beat $420 over a year after the tweet of CEO Elon Musk that he had funding secured to take the firm private at that price of the share. The now-notorious August 07, 2018, tweet sent the stock rising, but it also marked the start of a messy ride for both the firm as well as Musk himself. During the sixteen months that followed, Tesla stock bottomed out at a low of three-year just below $177 per share in June before rebounding back up and breaching about $420 on Monday.

Yesterday, Musk marked the occasion with a joke in his tweet.

The way to $420 looped through the latest performance records along with extreme low points that took a lawsuit, layoffs, government investigations and operational challenges. Unexpectedly profitable 3rd quarter capped off that journey and until now the stellar end of the year. Musk announced in the outcome of the original tweet that Tesla would continue work as a publicly-traded company, but that was not sufficient to calm the nerves of the investors. Tesla stock fell around sixteen per cent during the three weeks after the tweet.

Calls for Resignation of Elon Musk

Must be in a hurry to stun investors again when he gives the impression just weeks later on the Joe Rogan smoked and podcast what appeared to marijuana throughout the interview. The adventure drove the stock down another 6.3 per cent the following day and flashed calls for his resignation and interrogations about his mental stability. The U.S. Securities and Exchange Commission (SEC) then charged Musk for securities fraud as he failed to unveil the proper documents before announcing the decision to take Tesla private. The SEC pursued to ban Musk from holding director or officer positions at any publicly traded firm. Musk retailed his position as CEO by settling with the SEC, though he enforced to give up his role as chairman and pay a fine of $20 million.

Tesla Stock Hits $420 (Stock Price since August 7, 2018)

Tesla stock hits $420 per share on Monday after Musk’s tweet

In a statement to CNBC, Musk said at the time that this unfair action of SEC leaves him deeply disappointed and saddened. He added, he always took action in the best interest of investors, transparency and truth. Honesty is the most important worth in his life, and the evidence will show he never compromise on these anyway. Just after the settlement, the shares of Tesla soared 17.35% to around $310.70, but the stock twisted south again days after when Musk joked SEC in a tweet, naming the agency the “Shortseller Enrichment Commission.” Shares closed the next day down seven per cent at around $261.95 per share.

The firm improved a bit when it reported an unexpectedly profitable 3rd quarter of 2018. The report presented better than expected sales of cars and a quick timeline on its production of Model 3, sending stock rising over twelve per cent. Musk marked it as an extremely historic quarter. The celebration stays for a short duration. Tesla announced in the fourth quarter that it would reduce its staff by seven per cent and in an email, Must write to workforces that the firm faces a very tough road ahead. The January dismissals affected a minimum of one thousand California employees and sent the stock down thirteen per cent. When Tesla reported a profitable 4th quarter the same month as downsizings, it wasn’t sufficient to satisfy Wall Street, and the stock took a rise of five per cent.

Tesla Stock Dipped Below $200

Tesla Stock fell below $200 per share in late May as Adam Jonas, an auto analyst of Morgan Stanley cut the worst-case forecast of the firm on the stock of Tesla from $97 per share to just $10, citing worries about the augmented debt load and geopolitical exposure of the company. Other key analyst followed suit, including Goldman Sachs, that cut its price target one month later on concerns regarding the demand for vehicles of Tesla.

Colin Langan of UBS also slashed his price target by twenty per cent in June to $160 per share and repeated his sell rating. The worries followed numerous changes to business plans of Tesla, including an announcement to move to an online sales model that might result in several store closings and price cuts. The stock flew to its lowest point in the last three years on June 3 at around $178.97 a share.

The third-quarter comeback of Tesla

The stock recovered in October after Tesla reported better-than-expected earnings along with surprise profit. Also, the company told investors that it is up ahead of schedule with its latest factory in Shanghai. Shares spiked over twenty per cent. New Shanghai Gigafactory of Tesla, the first outside the United States, now gradually ramping up in China, whereas analysts do not suppose to see mass production till next year. Musk hailed the outlet and the Chinese market as key to the company’s future, as Tesla vehicles’ demand increases in China.

The firm expected to cut labour costs and raise the profit margins at the facility, but on Wednesday, Bloomberg reported that the Tesla is considering decreasing the price of its China-manufactured Model 3 vehicles by twenty per cent or more. Development at the plant is a positive sign for the company that historically missed predictions for the start of production. Musk announced plans in November for the fourth Gigafactory of the company in Berlin, Germany.

Throughout the 2019 first three quarters, Tesla sales increased in European states regardless of a slowdown in the general market for new cars in the region. Over the weekend, Bloomberg reported that Tesla got one step near to realizing the factory after the firm settled to the text of a land purchase contract for the site. On the third-quarter earnings call of the company, Musk told shareholders that Tesla is going to reveal its long-awaited Model Y crossover most probably in next summer. And the firm debuted its Tesla Cybertruck.

Read Also: Elon Musk claimed Tesla Received around 146,000 orders for Cybertruck

LEAVE A REPLY

Please enter your comment!
Please enter your name here