Tesla Stocks Go Up by 7% with Market Cap Reaching $200 Billion in Q2
Tesla shares went up to an all-time new high on Tuesday 30 June as they rose by 7%. Each share cost above $1,087 as of yesterday, and came down a little to $1,075 per share, which represents a $200 billion market capitalization.
It's not been all easy sailing for Tesla, as reaching this current price level wasn't a linear process.
Over the years, Tesla stocks have been relatively volatile. That said, the past three quarters have been very profitable for the U.S. EV company. Such a solid continual profitably may have provided confidence for Tesla investors, even those who previously questioned the company.
Even though the questionable current global economic situation is quite dire, Tesla is looking to most likely break even for its second quarter, and potentially even be profitable.
This may have been what triggered the 7% price increase during the current trade season.
As per Tesmanian, CEO of Tesla Elon Musk sent an email to employees of the company on Tuesday 30 June noting that the company may achieve a "victory" quarter, but that all hands on deck were needed. "Breaking even is looking super tight. Really makes a difference for every car you build and deliver. Please go all out to ensure victory!"
Given Tesla is rumored to be checking out massive plots of land around Texas for its next gigafactory location, the company can't be doing all that badly, even during a pandemic. Moreover, it looks like work on its Shanghai gigafactory continues and all seems set in that regard too.
Let's see what Q2 will bring for Tesla, but it's looking quite promising at the moment.