Tesla shares have reached an all time high, spiking to $286 in wake of the launch of an online ordering service for Model S and Model X vehicles in Dubai. The value of company stock smashed through the previous all-time closing high of $280.02 that was achieved in in July 2015, and came to rest in the neighborhood of $284 at the time of writing this news.
Check out the trends exhibited by Tesla stock during the course of the day. There are a lot of fluctuations, however, the stock has generally progressed upwards.
It is not really certain why this sudden spike occurred. CEO Elon Musk did announce the launch of an online ordering service for Model S and Model X vehicles in Dubai, however, it is unlikely that the news contributed to an increase of this magnitude all on its own.
Tesla has been generating some positive vibes of late The company recently announced that it was shutting down a California plant because it was gearing up to launch the Model 3 in multiple markets. That could have boosted investor confidence and told them that vehicle production over at Tesla was progressing en per schedule. If you remember, the company had recently faced the onslaught of rumors that suggested that it would be unable to achieve the goals set with respect to the Model 3 because of insufficient funds.
However, the decision to close down the plant suggests otherwise. What’s more, it would be surprising that the company lagged behind due to a lack of funds, Considering its robust, future looking strategy, Tesla shouldn’t have much of a difficulty in raising funds — should a need for the same present itself.
Meanwhile, this should also serve to allay shareholder fears that arose in wake of Tesla’s SolarCity acquisition. SolarCity wasn’t doing terribly well at the time and was facing a cash crunch, which led to several shareholders strongly opposing the move — calling it averse to company health. Well, the acquisition — along with several other daring moves made by the company during the course of last year — would appear to be holding up for now. Speaking of holding up, many major analyst firms have a “hold” rating on the company stock, suggesting it could keep increasing yet.
