TechCentralTechCentral
    Facebook Twitter YouTube LinkedIn
    Facebook Twitter LinkedIn YouTube
    TechCentral TechCentral
    NEWSLETTER
    • News

      Alviva shares leap higher on R3-billion take-private offer

      30 June 2022

      Datatec to sell Analysys Mason for as much as R4.1-billion

      30 June 2022

      Futuregrowth launches start-up fund, targets R600-million raise

      30 June 2022

      Eskom is killing the rand

      30 June 2022

      Eskom ramps up load shedding as crisis deepens

      30 June 2022
    • World

      Graphics card prices plummet as crypto demand dries up

      30 June 2022

      Bitcoin just had its worst quarter in a decade

      30 June 2022

      Samsung beats TSMC to 3nm chip production

      30 June 2022

      Napster plots crypto comeback

      29 June 2022

      Pictures: Chinese spacecraft acquires images of entire planet of Mars

      29 June 2022
    • In-depth

      The NFT party is over

      30 June 2022

      The great crypto crash: the fallout, and what happens next

      22 June 2022

      Goodbye, Internet Explorer – you really won’t be missed

      19 June 2022

      Oracle’s database dominance threatened by rise of cloud-first rivals

      13 June 2022

      Everything Apple announced at WWDC – in less than 500 words

      7 June 2022
    • Podcasts

      How your organisation can triage its information security risk

      22 June 2022

      Everything PC S01E06 – ‘Apple Silicon’

      15 June 2022

      The youth might just save us

      15 June 2022

      Everything PC S01E05 – ‘Nvidia: The Green Goblin’

      8 June 2022

      Everything PC S01E04 – ‘The story of Intel – part 2’

      1 June 2022
    • Opinion

      Has South Africa’s advertising industry lost its way?

      21 June 2022

      Rob Lith: What Icasa’s spectrum auction means for SA companies

      13 June 2022

      A proposed solution to crypto’s stablecoin problem

      19 May 2022

      From spectrum to roads, why fixing SA’s problems is an uphill battle

      19 April 2022

      How AI is being deployed in the fight against cybercriminals

      8 April 2022
    • Company Hubs
      • 1-grid
      • Altron Document Solutions
      • Amplitude
      • Atvance Intellect
      • Axiz
      • BOATech
      • CallMiner
      • Digital Generation
      • E4
      • ESET
      • Euphoria Telecom
      • IBM
      • Kyocera Document Solutions
      • Microsoft
      • Nutanix
      • One Trust
      • Pinnacle
      • Skybox Security
      • SkyWire
      • Tarsus on Demand
      • Videri Digital
      • Zendesk
    • Sections
      • Banking
      • Broadcasting and Media
      • Cloud computing
      • Consumer electronics
      • Cryptocurrencies
      • Education and skills
      • Energy
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Motoring and transport
      • Public sector
      • Science
      • Social media
      • Talent and leadership
      • Telecoms
    • Advertise
    TechCentralTechCentral
    Home»Sections»Motoring and transport»Investors in awe as Tesla share price doubles in just weeks

    Investors in awe as Tesla share price doubles in just weeks

    Motoring and transport By Agency Staff5 February 2020
    Facebook Twitter LinkedIn WhatsApp Telegram Email

    Within minutes of the stock market’s open on Tuesday, shares of Tesla shot up 17%. Which feels extraordinary, except for the fact that they gained more the previous day — 20% — and also surged 10% one day last week and 7% and 10% the week before that.

    By the time the market closed, the stock had gained 112% this year, giving the electric vehicle maker a market value greater than that of General Motors, Fiat Chrysler Automobiles and Volkswagen combined. There is, not surprisingly, plenty of wonder and awe on Wall Street about the rally — no other stock on the Nasdaq 100 is even up a quarter as much in 2020 — but few concrete explanations as to what’s driving it.

    Theories abound, including many of the tried and true — it’s the result of CEO Elon Musk delivering record revenue and his fourth quarterly profit in six periods; or it’s a short squeeze; or it’s the opening of a key new factory in China; or it’s an extreme case of Fomo sweeping across the investor community. Or it’s a combination of all of the above.

    Musk may be adding to his lead, ensuring in the process that the company dominates one of the true growth markets in the world for years to come

    There is another school of thought emerging, though, that likely also helps explain the magnitude of the rally. The gist is that the long-held assumption that legacy automakers will catch up to Tesla in the electric vehicle market is wrong. In fact, Musk may be adding to his lead, ensuring in the process that the company dominates one of the true growth markets in the world for years to come.

    “There’s a recognition that Tesla is in a pre-eminent position in terms of EV technology,” Peter Rawlinson, CEO of Lucid Motors, said in an interview Monday at the BloombergNEF Summit in San Francisco. “They’re even further ahead than has been reported, and I think the gap is widening, not closing.”

    Eclipsing rivals

    Tesla rose as much as 24% to $968.99 on Tuesday before plunging suddenly in the last few minutes of trading, trimming share prices by more than $100 each, and bringing the stock’s one-day gain to 14%. Rawlinson’s praise echoed comments made recently by the CEO of Volkswagen, the world’s top-selling automaker. Tesla eclipsed the German manufacturing giant by market capitalisation on 22 January. Not even two weeks later, its $159.9-billion value at Monday’s close exceeded VW’s by more than $66-billion.

    Cars will “become the most important mobile device,” VW’s Herbert Diess told top executives at an internal meeting last month. “If we see that, then we also understand why Tesla is so valuable from the view of analysts,” he added, lamenting that VW isn’t also looked at as tech-like.  — Reported by Gabrielle Coppola and Ed Ludlow, (c) 2020 Bloomberg LP

    Elon Musk Elon Musk VW Herbert Diess Tesla top Volkswagen
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email
    Previous ArticleTransnet outlines plans for better, cheaper coal to Eskom
    Next Article ‘Utter madness’: DA lashes Mantashe over ‘second Eskom’ plan

    Related Posts

    Alviva shares leap higher on R3-billion take-private offer

    30 June 2022

    Datatec to sell Analysys Mason for as much as R4.1-billion

    30 June 2022

    Futuregrowth launches start-up fund, targets R600-million raise

    30 June 2022
    Add A Comment

    Comments are closed.

    Promoted

    Billetterie simplifies interactions between law firms and clients

    30 June 2022

    Think herding cats is tricky? Try herding a cloud

    29 June 2022

    How your business can help hybrid workers effectively

    28 June 2022
    Opinion

    Has South Africa’s advertising industry lost its way?

    21 June 2022

    Rob Lith: What Icasa’s spectrum auction means for SA companies

    13 June 2022

    A proposed solution to crypto’s stablecoin problem

    19 May 2022

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2022 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.