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Speaking at a virtual conference on batteries hosted by the German government, Tesla CEO Elon Musk suggested that the company could launch a hatchback model for Europe.
Tesla Inc (NASDAQ: TSLA) stock is down approximately 2% during Wednesday’s pre-market after closing yesterday at $555.38, up 6.43%. All these movements come at the time of distributing the news that the company could launch a Tesla hatchback model in Europe.
Tesla stock has been among the best performing traditional stocks during the pandemic, whereby it has experienced over fivefold rally. Notably, the company has just surpassed the $500 billion market capitalization and stands at $526.24 billion at the time of writing.
With 947.9 million outstanding shares, Tesla has been able to raise substantial capital to fund its global market venture. Hereby capable of competing with Chinese EV companies that are not only springing up fats but also growing globally tremendously.
Nevertheless, Tesla investors are very optimistic that the company will emerge among the top winners in the post-COVID period. Supported by past performance, Tesla shares are likely to reach $600 according to different analysts’ predictions.
According to the metrics provided by MarketWatch, Tesla shares have rallied over 744% in the past twelve months. In addition, they have managed to add over 563% year to date, and are now up 37.26%, 30.78%, and 25.76% in the past three months, one month and five days respectively.
There are several fundamentals that are likely to affect Tesla stocks in the near future. One is the awaited ruling if Tesla shares will be added to the S&P 500 index by next month. If this happens, it will be a huge bull confirmation that will push Tesla stock beyond the current gains.
However, Tesla stocks have had a blick past history with whale investors that might cause its shrinking in the near future. Notably, sometime last month nearly 48 million Tesla stock shares, approximately 5% of the outstanding shares – worth more than $25 billion at current prices – were sold short. Whether this was a risk mitigation method as we approach the end of year holidays or not, it is a call for alarm in the Tesla stock near-future prospects.
Possible Tesla Hatchback Model for Europe
Speaking at a virtual conference on batteries hosted by the German government, Tesla CEO Elon Musk suggested that the company could launch a compact hatchback model for Europe. “Possibly in Europe it would make sense to do, I guess, a compact car, perhaps a hatchback or something like that,” Musk noted.
He further highlighted that a small compact model has a higher demand in Europe than in the United States that most people prefer bigger cars.
If Tesla manages to significantly penetrate the European market, its shareholders will greatly benefit. Apparently, Tesla’s rising market valuation continues to shrink the gap between it and Berkshire Hathaway.