Tesla stock continued to rally, rising by 5% and surpassing the $500 per share price for the first time in the automaker’s history. The stock is expected to soar. The optimism around Tesla comes on the back of its entrance into China and its growing delivery figures. According to FactSet, the stock has now doubled within the past 3 months.
Tesla now has a market cap of about $90bn which is close to $5bn more than Ford and General Motors combined. Tesla announced a surprise profitable quarter in October last year which started the surge of its stock price. Before that, the price was just $250
Tesla entered the Chinese market and started deliveries of Model 3s made in China at the end of last year. It quickly ramped up production to 1000 vehicles per week at its Shanghai Gigafactory. Musk announced plans to open up an engineering and design centre in Shanghai as well. China is the world’s biggest market for electric vehicles with 1.3m sold last year.
Tesla also impressed investors with its fourth-quarter delivery numbers last year. It delivered 112,000 vehicles in that quarter for a total of 367,500 vehicles throughout the whole year. This represented a 50% increase from 2018.