by Neal Freyman
Tesla’s stock is soaring to all-time highs this week. Closing at $404.04/share yesterday, it’s within striking distance of $420, the target set by CEO Elon Musk in August 2018, when he tweeted he was considering taking Tesla private.
Everyone laughed at him then, but now they’re secretly wishing they owned Tesla stock. Aside from two shattered truck windows, this quarter has been a huge success for the electric vehicle maker—it’s on track for its best quarterly stock gain in six years.
What’s fueling the rally?
- Tesla’s considering cutting the price of its China-built Model 3 sedans by 20% or more to spur demand, per Bloomberg.
- Dan Levy of Credit Suisse—a noted Tesla bear—grumpily admitted the company was leading in battery technology.
- Overall optimism about the company’s prospects in China, where it built a Gigafactory basically overnight.
Zoom out: Tesla shares have increased nearly 60% since it reported a surprise Q3 profit in October. With a market cap of $72.8 billion, Tesla’s far more valuable than other American automakers like GM ($53.2B) and Ford ($37.4B).