For the first time, the stocks of Tesla skyrocketed and crossed $1,000 and its CEO Elon Musk only left the word “lol” as a message about the surge.
Elon Musk, the CEO of Tesla had the latest contribution to the public discourse and was a short “lol.” It was tweeted out on an early Thursday morning, after more than $1,000 of stock closed for the first time on Wednesday.
Furthermore, the surge in the company’s stock made it one of the top-performing companies in the stock exchange of the US.
The tweets posted by the Tesla CEO are often news. Not long ago, Musk tweeted that the shares of Tesla (TSLA), an electric vehicle-making company, were too high. Before the tweet, the company’s stock was roughly $780. Initially, the shares dropped but it is now at $1,000. This is about 28 percent above the pre-tweet levels.
What About Elon’s Twitter Followers?
The company was able to reach a market cap of $190 billion. It was able to sell nearly 368,000 vehicles around the globe. In addition, it aims to sell more than 500,000 in the current fiscal year.
Tesla CEO’s message was “lol.”
LOL is an internet jargon which means laugh out loud. This is all that Musk gave his investors as well as his Twitter followers. The original tweet gained so many engagements. In fact, it was liked more than 289,000 times and was retweeted for almost 35,000 times.
The Tesla CEO has responded to the tweet of other people. Some of his replies included the internet stock meme “stonks” with an arrow that is pointing upward. Apparently, this indicates that the Tesla stock was the source of the “lol.” The children of the company’s investors, who are well versed in the culture of social media, might be required to decipher some of the communications made by Musk.
Moreover, the Tesla CEO has almost 36 million followers on the social media platform Twitter.
Tweets Can Catalyze the Stocks of A Business
While it might seem strange to follower Twitter accounts in order to get news, this is the reality of today’s market. In fact, Twitter can move stocks. The founder of the trucking company Nikola (NKLA), Trevor Milton, uses the said social media platform as well to talk about his company. Notably, Nikola is the competitor of Tesla.
Milton tweeted about the upcoming light-duty electric truck of Nikola. This product has a similar concept but a different appearance to Tesla’s Cybertruck. The tweet appears to be responsible for catalyzing a 104 percent rally in the shares of Nikola on Monday.
Analysts from Wall Street will also note when Musk tweets. Ben Kallo, a Baird analyst recently analyzed how the stocks of Tesla performed when its CEO tweeted about valuation. It would not be a surprise if his clients from Wall Street had asked him for context.
People show care when it comes to breaking news. This is especially true with stocks that are skyrocketing. The shares of Tesla is a perfect fit for this bill. It has gained about 140 percent year to date as well as 360 percent over the past year. It has been a remarkable run that was catalyzed by earnings that are better than expected.
Tesla Stocks Were Controversial Partly Because of Musk’s Tweets
One of the reasons why Tesla stock is controversial is because of the tweets. Less than one-third of the analysts from Wall Streets who cover the company rate also shares the equivalent of Buy. Dow Jones Industrial Average’s buy-rating ratio for stocks is more or less 55 percent.
Among analysts, the average price target for the stock of Tesla is about $680. This is well below the recent levels of trading. In addition, this is usual for stocks that Wall Street covers either.
According to Mark Tepper, the CEO of Strategic Wealth Partners, “Tesla is the most impossible stock to understand.” He added that the company is probably the only stock where the CEO can tweet that the stock is too expensive, yet it goes up 25 percent higher over the next month.
At almost midday, the stocks of Tesla were barely back above $1,000. It was able to reach $1,004. For comparison, the S&P 500, as well as the Dow Jones Industrial Average was down to 3.2 percent and 2.8 percent, respectively,
There has been a lot of news about the coronavirus pandemic. In addition, there were also negative reactions to the comments on the economic outlook made by Fed Chairman Jerome Powel on Wednesday. These are probably the two major factors that drove all stocks down.
The Demand For Model 3 in China Played A Role in Having Tesla Stock to Go North
Dan Ives, a Wedbush analyst noted that Tesla stock surged partly because China’s demand for Model 3 is stronger than expected.
In a note to his clients, Ives oted that they believe that the worth of the China growth story is at least $300 per share to Tesla. The EV penetration is set to significantly ramp up during the next 12 to 18 months.
According to the Tesla CEO, it was time to start the volume production of the company’s new commercial semi-truck. This ruck model was first unveiled to public in 2017. In the Tesla website, it was said that semi is powered by four independent motors, all of which require the lowest energy cost per mile.
The website report added that the 300-mile model of the truck would cost around $150,000. On the other hand, the 500-mile model would cost approximately $180,000.
It seems as if there is no stopping to the continuous surge in the stock of the vehicle-making company. In fact, the electric-vehicle maker has successfully climbed 145 percent this year. The $1000 increase in the company’s stock is also another thing that makes it mone of the to -performingcompanies in the US.