Following Tesla's incredible Q4 delivery numbers, the EV maker's stock has surged 14% in a single day. Even more bullish for Tesla, the surge in the stock price is taking place before some of the company's most exciting projects have come to fruition.
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Trying to reach volume production of the Model 3 was one of the toughest challenges in Tesla’s history. During the Model 3 ramp, Tesla burned through 3 billion dollars as the company tried to reach a production rate of 5000 vehicles per week. Musk at the time said the Model 3 was a “bet the company” moment.
And in December 2020, Elon Musk revealed that, during the most difficult part of the Model 3 ramp, he reached out to Apple to make a deal. Musk said, he planned to discuss the possibility of selling Tesla to Apple for 60 billion dollars.
Fast forward to 2022 and Tesla is in a completely different position as a company. Not only has Tesla successfully avoided bankruptcy but the EV maker has also grown to be by far the biggest auto OEM in the world by market capitalization.
Related news: Huge Announcement Expected This Week From Elon Musk About Giga Texas
And the party doesn’t seem to be slowing down for Tesla investors. First, the start of the year means Elon Musk has finished selling his Tesla shares. This will undoubtedly elevate the considerable selling pressure on the stock.
And second, the EV maker posted blowout vehicle delivery numbers for the quarter ending December 31.
Before Tesla released Q4 numbers, the Wall Street consensus put Tesla’s delivery numbers at 266,000. However, Tesla soundly beat those expectations delivering 308,109 vehicles.
And these two factors coupled together are setting Tesla stock for an incredible rise. On the first day of trading following the Q4 results, Tesla stock rose 14% in a single trading day. Currently, Tesla is valued at $1.2 trillion and the stock is trading at $1200 per share.
A 14% increase in the stock price means Tesla’s value has increased by over 140 billion in a single day. To put this into context, Volkswagen the 3rd biggest automaker by market cap has a $139 billion valuation.
Related news: Elon Musk Keeps His Promise As Tesla Ramps Model S/X Production By 50% In A Single Quarter
What is even more bullish for Tesla investors is that this surge in Tesla’s stock price is happening before the EV maker’s most exciting projects have come to fruition. Just this month Tesla is expected to begin production at two of the company’s newest factories.
In addition, 2022 will be the first time Tesla’s newest 4680 cells begin powring the company’s vehicles. Tesla also has a refreshed Model Y in the works, the Cybertruck is also expected to begin production by the end of the year, and there is a chance Tesla will announce the $25,000 compact vehicle.
Taking all these into consideration, 2022 is shaping up to be an incredible year for Tesla stock. We will be sure to keep you updated as the EV maker hits more milestones. Make sure to visit our site torquenews.com/Tesla for the latest information.
So what do you think? Excited about Tesla’s stock price surge? How high do you think the EV maker’s shares can go this year? Let me know your thoughts down in the comments below.
For more information check out: Tesla's Market Adjustment Of Model Y Raises Starting Price 44% In One Year Also, see Stunning Aerial Footage of Giga Texas As It Gears For Production Next Week
Tinsae Aregay has been following Tesla and The evolution of the EV space on a daily basis for several years. He covers everything about Tesla from the cars to Elon Musk, the energy business, and autonomy. Follow Tinsae on Twitter at @TinsaeAregay for daily Tesla news.
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