Tesla’s stock price is breaking new records.
Before market close on July 2, Tesla’s share reached an eye-watering $1208.66 per. The company’s valuation also climbed over $224 billion, which constitutes a new all-time high.
Skyrocketing Q2 delivery and production numbers
The soaring stock price is the direct result of Tesla’s announcement of their Q2 output, which was tallied at 90,650 deliveries and the production of 82,000 vehicles.
As soon as the announcement was made, Tesla’s stock jumped to more than 9% before settling at a 7.95% raise.
Furthermore, after announcing their Q2 data, Tesla’s delivery numbers are up quarter-to-quarter from 88,000 deliveries during Q1.
Those numbers are also down only 5% year-over-year, due to the impact of the COVID-19 pandemic on global supply chains.
Elon Musk takes a swipe at the SEC.
The Tesla CEO couldn’t resist taking a victory lap so-to-speak, and tweeted a barrage of sarcastic comments at the expense of the Security Exchange Commission (SEC).
Musk labeled the SEC as the Shortseller Enrichment Commission. As the derisive name suggests, the Tesla CEO is accusing the SEC of encouraging short selling practices against the company.
Musk’s relationship with the Commission is, at best, a disharmonious one. Musk tweeted back in August 2018 that he secured the funds to take Tesla private when its stock price reaches $420.
In September 2018, the SEC filed a lawsuit against Musk, alleging that the entrepreneur made “false and misleading statements” about Tesla. The SEC also alleged that the Tesla CEO failed to disclose the proper documents before announcing the intent to take the company private.
Musk reached a settlement with the Commission during the same month. The terms stipulated that Musk steps down as the chairman of Tesla’s board of directors for three years and pay a $20 million fine.
During the 14 months that ensued, Tesla’s stock bottomed out at a three-year low at approximately $177 per share in June 2019.
Since then, Tesla’s stock steadily climbed back up and eventually surpassed the $1200 threshold.
In conclusion, the company continues to defy expectations. The stock price goes up and down for various reasons as for every company, but Tesla is the catalyst behind a new industrial revolution. We are more than happy to be the witnesses of said revolution.