Tesla shares surge to more than $US500, becomes “existential threat” to carmakers

The Driven

Tesla is now an “existential threat” to legacy carmakers, a major US investment firm said overnight (US time) as the Californian carmaker’s stock values surged again to pass $US500 ($A724) on Monday.

The latest 10 per cent jump in the share price means that its value has nearly trebled since May 2019 – with the shares leaping from a low of $US176.99 ($A256.50) to close on Monday in New York at $US524.86 ($A760.66).

That puts a market value on Tesla of $US94 billion ($136 billion) – more than the combined value of US legacy car makers General Motors and Ford combined.

According to stock analysis company Shortsight, the latest jump in the share price has seen short-sellers lose another $US1.25 billion. Tesla had been the most “shorted” stock on the market – but much of the latest price rise is credited to short sellers covering their positions after realising their strategy was not the best idea.

And the share price and market value of Tesla is likely to go even higher.  Colin Rusch, an analyst for US investment firm Oppenheimer has reportedly raised his price target to $US612 ($A886.94) a share, becoming the biggest Tesla bull on Wall Street.

To read the full story on RenewEconomy’s electric vehicle dedicated site, The Driven, click here…