By
Temitope Olatunji
April 24th, 2024
Last year Elon Musk made a statement about reaching $420 per share and going private. Now Tesla stock has managed to reach this price.
Yesterday, before the market closing, a milestone event took place. Tesla stock reached $420 per share, which made a new record height for the company. Besides, this jump brought Tesla’s market cap to more than $75 billion.
Reacting to Tesla stock growth, the company’s founder Elon Musk tweeted:
Whoa … the stock is so high lol
— Elon Musk (@elonmusk) December 23, 2019
It is notable that last year when the price was about $379.57 per share, Elon Musk stated he had a buyer that would take Tesla private at $420 a share. He wrote at that time:
Am considering taking Tesla private at $420. Funding secured.
— Elon Musk (@elonmusk) August 7, 2018
A week later, Musk said the potential buyer was Saudi Arabia’s sovereign wealth fund that had approached him several times on the acquisition. However, later Musk stated it is better for Tesla to remain public.
This tweet brought him into trouble with the U. S. Securities and Exchange Commission (SEC). Investors also criticized Tesla CEO, stating he was misleading them. The identity of the mystery buyer was not revealed, and many thought the tweet was Musk’s joke. Moreover, it cost Musk $20 million in fines with the Securities and Exchange Commission. He also had to leave his position as chairman of the company.
After all these events, Tesla saw its shares soaring. Besides, Tesla posted its surprise profit for the third quarter, which made shares spike by 20%. Following the company’s report, Ark Investment Management founder and CEO Catherine Wood made her own predictions. She believes Tesla’s Q3 earnings mark “the beginning of an eventual rise to $4,000 per share and possibly beyond.” Currently, this figure seems to be impossible. But we never know what may happen and how the market will behave.
In general, in 2019 Tesla has experienced both ups and downs. But its shares never approached $420, until yesterday. Last week, Tesla stock hit a record high, rising 2.39% to $402.67. Yesterday, Tesla stock reached $422.01, which means the carmaker may soon go private.
Tesla Recent Performance
Recently, Tesla has reached an agreement with the government of Germany’s Brandeburg municipality to build its first European gigafactory. An American automotive and energy company will build it near Berlin.
Further, Tesla decided to decrease the price for its Model 3 sedans that are built in China by at least 20% in 2020. Those familiar with the situation stated that Tesla hopes this move will attract new (and old) customers. New prices might start at 355,800 yuan ($50,800).
Having a quite strong reputation, Tesla should make more efforts to support its name. It is no secret the company has a number of rivals, the strongest of them is Porsche. The rivalry that began from Musk himself is really tough. As Porsche presented another version of their new all-electric Taycan, Tesla seems to start losing its positions.