The stock is up about 125% year to date and up 362% over the past year.
Photograph by Kenzo Tribouillard/AFP via Getty ImagesElectric-vehicle pioneer Tesla set another record Monday. Shares closed at an all-time high, finishing the day at $949.92, up 7.3%
Chinese sales data, along with the strength of the overall market, pushed Tesla (ticker: TSLA) stock up. The S&P 500 gained 1.2% and the Dow Jones Industrial Average jumped 1.7%.
Tesla shares traded as high as $968.99 on Feb. 4 but closed that day at $887.06. There is no right way to mark an all-time high, but most stock charts track the daily closes. What’s more, the closing price is the market’s final judgment of value for any given day.
The highest previous close for Tesla shares was $917.42 on Feb. 19. That means Tesla has another $19, or roughly 2%, to hit a new all time high by any measure—intraday or closing prices.
It has been a remarkable run for Tesla shares. The stock is up about 125% year to date and up 362% over the past year.
The returns are even more impressive considering Tesla isn’t a small-capitalization automotive company. It is the second-largest automotive manufacturer in the world by market value, trailing only Toyota (TM). Tesla lags behind the Japanese giant by about $40 billion. That is still about 23% away, based on Tesla $175 billion market value. Tesla bulls might have to wait a little while to eclipse Toyota’s market cap.
Strong earnings and operational execution have fueled Tesla’s rally. The company has posted better-than-expected earning for three straight quarters. In addition, the company opened a new assembly plant in Shanghai, driving down its production costs and helping the company quality for additional EV subsidies in China.
Looking ahead, Tesla plans to display its battery technology to investors in the near future. If it convinces Wall Street it has a substantial lead over the rest of the auto industry regarding battery range and costs, shares should keep trading higher.
Second-quarter earnings, of course, will also matter. Currently, analysts project Tesla will have delivered about 66,000 cars between April and June. Plant closures because of the Covid-19 crisis have made second-quarter Wall Street estimates volatile. That is something investors will have to prepare for when numbers come out around the end of July.
One of the more interesting market tidbits about Tesla these days is the company’s impact on the Russell 3000 Auto & Auto Parts Index.
That index is up about 17% year to date. But Tesla is worth more than all the other components of the index combined. All other components are down about 13% on average. From a stock-market perspective, Tesla is pulling the entire U.S. automotive sector higher.
Write to Al Root at allen.root@dowjones.com
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Tesla Stock Finishes Just Shy of $950, a Record Close - Barron's
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