Tesla (TSLA) Pulls Stock Market Higher, Nasdaq Hits ATH, Dow Closes Up Over 400 Points

February 5, 2020 by Bhushan Akolkar · 3 min read
Photo: Herman Caroan / Flickr
Photo: Herman Caroan / Flickr

Tesla (TSLA) stock is in green. Moving higher, it is a real booster for the stock market. The Dow Jones Industrial Average, the S&P 500 and the Nasdaq have surged.

We are just one month into 2020 as Tesla investors are riding with immense joy. So far, Tesla Inc. stock price has surged 100% since the beginning of the year in an unprecedented rally.

Tesla’s stock has been soaring new highs ever since it announced its Q4 2019 beating street estimates. On Tuesday, February 4, the Tesla stock was actively climbing up to $1,000. It closed at $887 taking the company’s market cap close to $160 billion. Tesla’s stock performance has pushed the company way ahead of its big-three automobile companies in the U.S.

Valued at $160 billion, Tesla’s market cap is more than the combined market cap of General Motors ($49 billion), Ford ($36 billion), and Fiat Chrysler Automobiles ($18 billion).

Besides, Tesla was the major driver of the overall market as Dow Jones Industrial Average added 400 points on Tuesday while Nasdaq managed to hit its all-time high. On Tuesday, the markets rallied on the hope that the fears of coronavirus are likely to go away sooner than expected.

The outbreak of the coronavirus in China last month gripped the world with fear and uncertainty. With global travelers moving in-and-out of China, the impact of the virus also spread to other global locations. The impact of this outbreak was clearly visible as global markets reacted negatively with investors pulling out their money.

But thanks to the strong performance of giants like Tesla which has held the market and, in fact, brought the bullish momentum back. On Tuesday, the Nasdaq gained over 2% closing at 9467.97 levels. Similarly, the Dow Jones Industrial Average surged 408 points to close at 28,807. Meanwhile, the S&P 500 also surged 1.5% ending the day at 3297.59.

Analysts Revise Their Targets for Tesla

With Tesla taking a massive lead over its competitors, analysts are going all gaga over Tesla’s stock predictions. Several analysts have revised their targets for the Tesla stock for this year in 2020.

Some analysts think that Tesla can comfortably touch the levels of $1200-$1300 be the end of this year. During the Q4 2019, the company itself said that it plans to release 500,000 units of Tesla cars across all its models. This will certainly be a new feather to Tesla’s cap which has been consistently questioned of its mass production abilities.

Besides Tesla CEO Elon Musk always adopting a futuristic stand we can expect more automation in the production line as well the Tesla car to be launched in the coming times. Elon Musk has also already announced an AI hackathon.

As per ARK Investments, the Tesla stock can possibly hit $7,000 levels by 2024 making it a trillion-dollar company. But there is also an opinion that the price of $15,000 in 2024 will be achieved.

All eyes are on Elon Musk as to how he steers ahead of the company in the next decade.

Business, Indices, Markets, News, Stocks
Bhushan Akolkar
Author: Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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