This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
What happened
Shares of Tesla (NASDAQ: TSLA) soared on Thursday, rising more than 7% as of 3:00 p.m. EDT.
The stock’s gain builds on recent momentum since the announcement of an upcoming five-for-one stock split. This momentum and an overall bullish day for growth stocks (like Tesla) are likely behind the stock’s rise on Thursday.
So what
Shares of Tesla have been on a tear recently. The stock is now up nearly 800% over the past 12 months and 24% in the past five trading days alone. Investors — and even some analysts — have cheered the company’s upcoming stock split, betting it will solicit more demand for the stock at a time when many retail investors are turning to individual stocks. This pre-stock split momentum seems to be continuing today.
Though the imminent split is probably not one of the main reasons Tesla stock is trading higher on Thursday, one headline that could have a slightly positive impact on price action today comes from the Asian news website Nikkei. The news website reports that Panasonic plans to invest more than $100 million next year in battery-production capacity at Tesla’s factory in Nevada. In addition to boosting production capacity at the factory, the company is upgrading the storage capacity of the batteries it is making by 5% in September, according to Nikkei.
Now what
Tesla’s business recovered quickly from factory shutdowns earlier this year. The company recently reinitiated its pre-COVID guidance for 500,000 vehicle deliveries this year, up from about 368,000 deliveries in 2019.
Tesla shares will begin trading on a five-for-one split-adjusted basis on Aug. 31.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
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More reading
- Tesla Gigafactory 1 to boost battery production capacity 10% after new $100 million panasonic investment
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- These soaring tech shares are making savvy investors rich
- Stock split watch: Could Amazon be next?
Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The post Why Tesla Stock Soared Past $2,000 on Thursday appeared first on Motley Fool Australia.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
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