Shares of Tesla stock continued their wild ride as they briefly rose above $800 and retreated on Monday, the same as they did last week.
Shares of the electric vehicle maker’s stock climbed as high as 7 per cent in Monday’s trading, helping the company rise above the $800 level it hit on Tuesday, before backing off those gains and closing 3.1 per cent higher.
The stock’s rise came on news that Tesla’s Shanghai plant would resume production after its recent Lunar holiday closure on Jan. 30 was extended due to coronavirus concerns.
The plant has remained closed as China has has tried to contain the flu-like illness, which has claimed more than 900 lives.
Shares of Tesla stock continued their wild ride as they briefly rose above $800 on Monday and retreated, the same as they did on Feb. 4
The latest rise in Tesla’s stock came on news that its Shanghai plant (pictured) would resume production
Tesla’s Shanghai factory has remained closed as China has has tried to contain the flu-like illness, which has claimed more than 900 lives. Medical staff are pictured moving a patient infected with coronavirus into isolation at a hospital in Wuhan last week
Tesla Vice President Tao Lin said production would restart on Feb. 10, although deliveries would be delayed, Reuters reports.
The plant builds the company’s Model 3, a mass production vehicle that will play a key role in helping the EV maker remain sustainable, while continuing to grow.
Tesla’s stock also hit the $800 level on Monday after Morgan Stanley said the market’s shift to electric cars from those using combustible engines could be valued at $25 trillion over the next few decades, MarketWatch reports.
Additionally, rival Nio of Shanghai, referred to as the Tesla of China, reported its January sales were off from a year ago, but the results were still viewed as ‘satisfactory’, given the coronavirus outbreak’s impact on production and the timing with the lunar new year.
Tesla stock rose as much as 9.6 per cent on Monday and hit $819.00 during intraday trading, which was the first level above $800 since the morning of Feb. 5, and then were up a little more than more than 4 per cent by afternoon trading, reports MarketWatch.
The stock was now trading 12 per cent below its Feb. 4 record close of $887.06, and 19.5 per cent below the all-time intraday high of $968.99 that it hit the same day, MarketWatch reports.
The stock has still more than doubled, up about 132 per cent, over the past 90 days, while the S&P 500 Index gained 8.1 per cent.
Tesla’s Shanghai plant builds the company’s Model 3, a mass production vehicle (pictured) that will play a key role in helping the EV maker remain sustainable, while continuing to grow
Tesla founder and CEO Elon Musk attends a ceremony at Tesla’s Shanghai plant in January
Morgan Stanley analyst Adam Jonas told clients that global electric vehicle penetration was currently about 2 per cent to 3 per cent, reports MarketWatch.
Tesla became the most valuable US car maker of all time after the company closed on Jan. 13 with a market value of $81.39billion.
The company surpassed Ford Motor’s peak of $80.81billion that was set in 1999.
But Tesla’s market value still trails Toyota and Volkswagen.
The carmaker’s founder Elon Musk, meanwhile, has been on track to earning a record-breaking $346 million pay day.
Musk, who doesn’t earn a salary or cash bonus, instead gets options to vest based on Tesla’s market cap and milestones for growth
And he came close to earning the first $346 million tranche of options in a record-breaking pay package in January, after the electric vehicle maker’s stock more than doubled its value of the previous three months.
Jonas says that amid Tesla’s rapid surge to become the most valuable US carmaker — currently with a market cap of about $135 billion — that many original equipment manufacturers ‘are accelerating efforts to flip internal combustion propulsion systems to full battery electric vehicle architectures.’
Jonas says EV penetration could more than triple to 11 per cent by 2025, then reach 24 per cent by 2030, 70 per cent by 2040 and 82 per cent by 2050.
Tesla founder Elon Musk’s Twitter campaign against Facebook
Before the latest rise and fall of Tesla stock, the company’s founder Elon Musk drew attention to himself after calling on Facebook users to delete their accounts, blasting the social media site as ‘lame’.
The billionaire owner of Tesla, as well as aerospace manufacturer SpaceX tweeted the #DeleteFacebook hashtag in response to British comedian Sacha Baron Cohen, a vocal critic of Facebook.
Baron Cohen had tweeted: ‘We don’t let 1 person control the water for 2.5 billion people. We don’t let 1 person control electricity for 2.5 billion people. Why do we let 1 man control the information seen by 2.5 billion people?
‘Facebook needs to be regulated by governments, not ruled by an emperor!’ he added, accompanied by a doctored photo of Mark Zuckerberg’s face on a Roman statue.
Musk replied: ‘#DeleteFacebook It’s lame’.
The #DeleteFacebook hashtag has been trending since March 2018 when it was confirmed that Facebook had hired Cambridge Analytica to harvest personal private data from up to 87 million Facebook user accounts for advertising purposes.
Musk deleted the official Facebook accounts for Tesla and SpaceX the same month after being prompted by a Twitter user to do so.
‘I didn’t realise there was one. Will do,’ he said at the time.
‘It’s not a political statement and I didn’t do this because someone dared me to do it,’ he later tweeted regarding the decision.
‘Just don’t like Facebook. Gives me the willies. Sorry.’