Tesla shares are roaring back
BNN Bloomberg
Tesla Inc. shares are staging a comeback as investors expect the Elon Musk-led electric carmaker to navigate the crippling semiconductor shortage better than rivals that have been severely disrupted.
Tesla Inc. shares are staging a comeback as investors expect the Elon Musk-led electric carmaker to navigate the crippling semiconductor shortage better than rivals that have been severely disrupted.
The stock gained as much as 2.6 per cent to US$864.62 on Monday in New York, up over 50 per cent from a March 8 low of US$563. That comes after eight weeks of gains, its longest winning streak since before the COVID-19 pandemic roiled markets. The rebound makes it the sixth-biggest publicly listed company in the U.S., firmly ahead of Berkshire Hathaway Inc.
“We believe an evolving green tidal wave will push shares of Tesla higher despite the near-term chip shortage with 3Q earnings this week another positive catalyst,” wrote Wedbush analyst Daniel Ives in a note from Sunday.
Tesla shares have been steadily climbing in recent months, aided by strong quarterly results that showed the company fared much better than traditional carmakers in handling the semiconductor shortage. Deliveries for the third quarter beat all estimates.
Telsa’s handling of the chip shortage even drew praise from one of its biggest competitors.
