Tesla stock price, an electric vehicle (EV) company, jumped 33% this week. It is the highest weekly increase since 2013.
Tesla closed at USD 177.90 on the 27th (local time), the last trading day of this week, jumped 11% from the New York Stock Exchange.
On a weekly basis, Tesla jumped 33%, the largest rally since May 2013. It rose 65% compared to the closing price on the 3rd, the first trading day of this year.
After announcing good performance on the 25th, it has been showing an 11% increase for two consecutive days.
In the fourth quarter of last year, sales ($24.32 billion) and earnings per share ($1.19) exceeded Wall Street estimates. CEO Elon Musk also showed confidence by presenting a positive outlook on electric vehicle demand in a conference call held after the earnings announcement.
Bloomberg said, “We are giving investors a faint hope that Tesla may finally end its worst situation since 2022 when it was disastrous.”
Not only Tesla but also other electric vehicle companies held a rally together.
Rivian, which makes electric pickup trucks and sport utility vehicles (SUVs), jumped 22 percent this week. Traditional automakers Ford and General Motors also rose more than 7 percent, respectively. Lucid, which produces high-end electric sedans, soared 43% on the same day alone as rumors spread that it would be acquired by Saudi Arabia’s sovereign wealth fund and converted into a private company.
However, the Federal Open Market Committee (FOMC) of the Federal Reserve System (Fed), which will take place on the 31st of this month and the 1st of next month, is expected to be an obstacle to the rise of electric vehicle companies including Tesla.
Bloomberg diagnosed that if the Fed takes a hawkish attitude, Tesla’s upward trend will be cut off. CNBC also reported that short selling forces aimed at falling stock prices are flocking to Tesla.
