Tesla began its rollercoaster ride at the beginning of February surpassing their share price by almost $1,000 with the highest intra-day stock price recorded at $968.99. Elon Musk was mentioned in the halls of Wall Street during last week as Tesla’s stocks swung hundreds of dollars in both directions.
To begin the story, the stock begun with a record high price of $670 a share. This did not however, come as a surprise after Tesla’s better-than-expected quarterly earnings. However, that was nothing compared to what was to come for Tesla. Share prices continued to climb up after two consecutive days of trading and climbed almost 20% on Monday and 14% on Tuesday rising to the highest share price during the intra-day trading.
However, the rocketed rise for Tesla’s stock came due to a phenomenon known as “a short squeeze” which basically amounts to buying huge amounts of a stock trading at a higher price in order to recoup losses. And true to its form as time passed and amid fears surrounding the losses of production and sales delaying in China due to the infamous coronavirus Tesla’s stock fell 17.2% on Wednesday. However, Thursday and Friday proved to be much less harsh for Tesla as shares gained a respectable 1.9% and dropped 0.1% respectively during trading times.
Additionally, during the three days, Tesla saw record-shattering exchanges of shares changing hands. Typically, Tesla undergoes around 18 million shares change hands. However, Monday, Tuesday and Wednesday saw shares in the amounts of 47 million, 60 million and 48 million shares changing hands respectively.
In retrospect, Tesla’s stock is currently dealing at 75% more as it was during the beginning of 2020, so any gains added to the share price only projects the growth that Elon Musk has dreamed for his company. Recently Tesla also passed Ford to gain the title of the largest car manufacturer in the world, in terms of value as it gained a market capitalization of $160 billion.