Update 12:25 PM EST: Paragraph 5 revised to include quote from Wedbush’s Dan Ives.
Tesla stock (NASDAQ: TSLA) has surged past the $1 trillion valuation mark once again for the first time since mid-January, following a nearly 16 percent rally in the past five trading days.
At the time of writing, Tesla shares were up over 1.3 percent, trading at $1,012.25 at 11:30 AM EST.
Tesla shares rebounded a portion of its valuation following a bearish few months this week. Tesla officially opened its Gigafactory Berlin facility in Germany this week following a year of bureaucratic red tape, which delayed production at the factory from starting for over eight months.
The German factory holds a crucial part in Tesla’s expanding production and manufacturing playbook as it works toward a production rate of 1 million vehicles annually. Last year, Tesla delivered over 930,000 electric vehicles with only two operational production facilities: its Fremont Factory in Northern California and Gigafactory Shanghai in China. The Shanghai factory was used as an export hub for all of 2021, as Model 3 and Model Y vehicles were sent to Europe over the past 15 months while Tesla waited for the regulatory approval of the Berlin factory.
“Tesla now back above $1 trillion market cap is a telling tale of the confidence the Street has in this generational growth story,” Wedbush analyst Dan Ives told Teslarati. “Musk is flexing his muscles with the Berlin and Austin build-outs, and within the EV landscape at this point it’s Tesla’s world and everyone else is paying rent.”
Additionally, rising gas prices could be helping Tesla as more consumers work to transition to electric vehicles. EVs have helped many people avoid paying over $100 at the pump, and a recent report indicated Tesla was experiencing increased order volumes in regions where gas prices were exceptionally high.
In the past month, shares have increased over 26 percent, trading at around $800 near the end of February. Tesla’s trillion-dollar valuation was officially recovered during trading hours yesterday, and it currently stands at $1.04 trillion.
March has treated Tesla pleasantly on Wall Street and could be its most successful month since October 2021, when the stock surged 44 percent.
Tesla is currently the sixth-most valuable company globally, following Apple, Saudi Aramco, Microsoft, Google, and Amazon.
Disclosure: Joey Klender is a TSLA Shareholder.
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