There is seemingly no end to the jubilation around Tesla, and particularly company’s financials. And in yet another addition to that positive news cycle, Panasonic has today reported a profitable quarter for the battery business that it jointly runs with Tesla. Such has been the uproar, that Tesla shares surged 20% on Monday in its largest one-day gain since 2013.
Tesla has had a tremendous bull run in the past year or so. All of this largely started with the company posting its first quarterly profit last year, surprising most on the wall street. This was followed by the second consecutive profit that the company posted more recently, sending its stock through the roof. In the process, the company also became the only American automaker to have a $100 billion market cap.
At the time of writing this piece, shares of Tesla Inc surged 15% on Tuesday to hit the $900 mark, extending a stunning rally that has more than doubled the company’s market value since the start of the year.
Interestingly, all of Tesla’s other battery suppliers also saw their shares closing on a high. Panasonic shares closed up 10%, while those of Tesla’s Asian suppliers South Korea’s LG Chem Ltd and China’s CATL also closed higher.
Panasonic further added, that it will increase production capacity in the coming months to meet Tesla’s demand in the US. This was a good enough indication that the production bottlenecks that continued to Elon Musk’s vision for quite some time, have finally resolved.