Are you wondering why Tesla Stock is up today? Perhaps there is a company-specific catalyst driving the stock. As of July 2018, there were 106 exchange traded funds holding Tesla stock, and there are projected to be 244 in December 2021. While we do not have a crystal ball, the market is clearly responding to news that is positive for the automaker. Whether or not it will continue to be this way is another matter entirely, but we can speculate based on the historical trend.
The stock had a strong run over the last eight days, ending on Friday. Although Tesla was surprised to re-enter the trillion-dollar club, investors were nevertheless encouraged by the company’s reversal of the recent bear market. If you are a bear, you might be wondering how Tesla stock was able to rally through the recent bear market. Despite its recent losses, the stock has added value despite the bear market and may even have staged a bottom a month ago.
In addition to the rumor mill, there are other important factors that investors should consider before investing in Tesla stock. Checking the company’s financials is critical. You are not buying the Tesla company as a whole; you are purchasing a small percentage of its business. In addition, you should check the company’s management and its competition. The balance sheet and income statement are critical documents for investors to review. NerdWallet has a comprehensive ranking of online brokers and robo-advisors, and Tesla ranks high among those.
The company makes a fraction of the cars that its competitors do. Nonetheless, it is valuing the company at five times the combined market cap of all its competitors by December 2021. While this valuation may seem outrageous, it is based on the promise of electric vehicles for the future. Clearly, investors have not acted on this information. If you think Tesla is overvalued now, wait a bit. Its competitors could be the ones to blame for the current underperformance of Tesla Stock.
Despite the recent news about Musk’s stake in Twitter, investors haven’t sold their shares. Tesla reported first-quarter production numbers and exceeded expectations. In January, it delivered 310,048 new cars, an increase of 67% year-over-year and 0.5% above its fourth-quarter production level. However, it missed its goal of 1.5 million cars by year-end, and its deliveries fell short of analyst expectations.
Another factor that may play a role in the decision to invest in Tesla is your financial situation. Your budget, timeline, and risk tolerance will all factor into your decision-making. If your savings account is small, investing in Tesla may not be the best option. You should focus on building a diversified portfolio with a mixture of stocks and bonds. If your portfolio is large, you can choose to invest in Tesla in a fractional share, which is a piece of a single share.
In May, a report revealed that Elon Musk has been instrumental in launching several high-profile tech companies, including Google, Yahoo and Hertz. These companies are not only the future of transportation, but the recent announcements of the two companies have helped reshape the equation and make the stock up almost two percent. However, it’s important to note that there’s no consensus on whether this particular tech company is a great investment or not.
Another reason for the stock’s recent rally is a recent event by CEO Elon Musk. At a ceremony marking the first deliveries from its new Berlin factory, he addressed fears from investors over the approval of the project. Tesla also held a ceremony March 22 to celebrate the opening of its new Austin assembly plant. These two new factories will double the number of Tesla’s assembly lines. Along with the original factory in Fremont, California, the company has a second factory in Shanghai.
If you’re wondering, why Tesla stock is up today, you should know that Tesla’s financial complex is a massive investment tool. In fact, the company’s financial complex is made up of a multitude of investment vehicles, including climate tech-focused equity-linked funds. The company exerts enormous influence over the equity and derivatives markets. However, the company hasn’t ceased to sell its cars as they continue to surpass their aggressive growth targets.