Thursday, March 4, 2021

Ever-rising Tesla stock prices.

Tesla's stock pirce has skyrocketed over the past year, rising more than 1,100% from its lowest point. Its market capitalization is now hovering around $800 billion, making it the fifth most valuable company on Wall Street. Only Apple, Microsoft, Amazon, and Google has higher market valuation.

The company's soaring stock price has some basis in how the company is doing. Tesla has delivered five profitable quarters in a row since the end of 2019. It's expanding production with new factories in the US, Germany, and China. It sold close to half a million cars in 2020, which is an impressive increase compared to 2019.

Meanwhile, Tesla's stock price has benefited from the election of Joe Biden, and the Democrats' control of both chambers of Congress. That boosts the likelihood that the new president can enact his plans to create hundreds and thousands of jobs in the US auto industry, invest in electric vehicle charging stations, and other green energy initiatives that could help Tesla's bottom line.

Tesla's market cap finally went over that of Facebook, just as the social media giant's share price slumped slightly amid fears that the new administration could lead to greater antitrust scrutiny. The gains are good news for Tesla's stockholders, and one in particular. CEO Elon Musk. He became the new richest in the world surpassing Amazon chief Jeff Bezos.