Tesla’s share price has almost doubled since its January low, topping $200 for the first time in three months, as its latest earnings results proved the enduring popularity of its electric vehicles and the broader tech sector recovers from last year’s market rout.
The Elon Musk-run company’s shares jumped more than 5 percent today (Feb. 9) to $213 in mid-day trading. It’s up more than 96 percent since the beginning of the year. By contrast, the Dow Jones Industrial Average rose only 3 percent and the tech-heavy Nasdaq index is up 16 percent year to date.
However, Tesla stock is still 32 percent below where it was a year ago and is down roughly 50 percent from its all-time high of $407 in November 2021. The EV maker claims a market cap of $665 billion, making it the most valuable automaker in the world.
Tesla posted record profits and vehicle deliveries last month
In late January, Tesla posted record high profits and revenue for the quarter ended Dec. 31, defying analyst worries its electric vehicles were losing market share. Tesla delivered more than 400,000 electric vehicles globally in the December quarter and around 1.31 million last year. Both numbers are the highest on record.
Orders for Tesla cars surged in late December and January after the company slashed the prices of its popular models as much as 20 percent. Demand was so strong Tesla actually began incrementally increasing prices in recent weeks.
In addition, the stabilizing situation at Musk’s Twitter also seems to be lifting investors’ confidence in Tesla. Musk tweeted Feb. 5 Twitter is “trending to breakeven.” Tesla shares jumped 3 percent the next day.
Musk previously said he would step down as Twitter’s CEO as soon as he finds a replacement. Besides Tesla and Twitter, Musk runs at least three other companies, including SpaceX, The Boring Company and Neuralink.