Christopher Haruna Hamman is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.
Tesla (TSLA) stock price rose by about 20% in the past week alone. Will it continue this way? Though there are some doubts due to the coronavirus concerns, prices see to remain steady.
Tesla Inc stock (NASDAQ: TSLA) has gone up this week. Sources say that stock prices moved more than 40% in the past week alone. Price on Thursday, the 19th March 2020 price was at $427.64. On the 26th of March which is a week later, the price has risen to $528.16 (at the closing bell). The difference in a week is 23.5%.
With a low of $512.25 and a high of $560, this shows that investors in Tesla stock (TSLA) are in a for a wild ride. The 19% rise shows that investors are because Tesla is a favorite of many despite the COVID-19 situation.
Today in the premarket, TSLA was at $508.00, which means that it was falling by 20.16 (-3.82%).
While Tesla (TSLA) stock remains above water, volatility in the financial markets still creates a “roller-coaster” effect.
Tesla Stock (TSLA) Price Is Held Up by Its Loyalists
Tesla (TSLA) itself has been kept above water by the “exclusive” nature of its products. Its charismatic CEO also beyond the bar. We can all agree that Elon Musk is both brilliant and not your average CEO. Its followers believe in Tesla’s products and swear by them. The technologies driving its electric vehicles are also ahead of the curve.
How bullish can such stock ever get? It appears that while most of the auto industry is going to bits, Tesla (TSLA) may still come out of the COVID-19 business cycle stronger than before.
Tesla seems to have it all figured out. With about 54.2% of Tesla (TSLA) held by institutional investors, there won’t be any major price drops in the stock prices based on the majority of investor sentiment.
$1 billion in free cash flows (FCF) was generated in 2019. The disruption cycle of the electric vehicle maker is coming to an end. Most vehicle users are already aware that anything Tesla works. using this brand recognition, the EV maker could experience some higher rates of growth in terms of sales.
Tesla Seems to Be Gaining Prominence
Tesla seems to be on everyone’s lips at the moment. It remains unclear if the new electric vehicle trend is just a fad. However, most of Tesla’s customers are selling electric vehicles for the company. They do so using the time-tested technique for sales: word-of-mouth. Their testimonies serve as the unique selling proposition of the company.
This is quite peculiar for a company whose CEO isn’t known for following the traditional rules of marketing and sales.
Tesla’s $2.3 billion raise earlier this year also puts it in the right territory. While most automakers are scrambling for new debt or extensions to older lines of credit, Tesla is focusing on delivering the goods.
This shows that the automaker will most likely sail through this tough period. It is expected that its current momentum will slow down should the coronavirus pandemic either get worse or continue.
One thing s sure: a peculiar company with its controversial CEO may end up being the king of the hill when it comes to vehicle sales. The electric vehicle may become king of cars this year and beyond.