Tesla’s Stock Surge Bodes Well For EV Marketplace, And The Grid

Tesla’s (TSLA) wild stock ride began Monday with a whopping 20% increase to $780 per share. That was followed by a 17% price spike Tuesday, sending prices near the $1000 dollar mark. Year-to-date that’s a 170% increase in Tesla’s share price, and a quadrupling since its low of $178 in June 2019.
The rally began after a positive fourth-quarter earnings report last week, revealing an above-expectations $105m profit. This was fueled by an accelerated roll-out of its new Model Y and positive news on the company’s battery manufacturing and patent front. Tesla’s first ever back-to-back profitable quarters drove the stock price up and continued higher still due to an historic ‘short squeeze’ (short sellers with positions against Tesla rushed to cover their positions – creating additional demand for shares).
Even after a 17% correction Wednesday the company is still up 71% on the year – sitting at $755 per share as of this writing. Tesla has now overtaken Volkswagen, General Motors, Daimler, and Ford, only trailing Toyota in total market capitalization.
As the leading name in electric vehicles (EV), Tesla’s ascendance is good news for the EV market, and for the electric grid.

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