More investors believe that Elon Musk can further expand the sales of the electric cars of Tesla Motors Inc. as made evident by a market value exceeding $20 billion in intraday trading.
The growth is attributed to a recent release that about 21,000 units of Model S electric sedan will be delivered this year and will double in 2014.
The stock value closed at 1.5 percent higher than last week's close and even peaked at 6.9 percent during intraday trading. It settled at $164.22 on Monday. It has exceeded $20 billion during the day but the $19.9 billion close is not that bad either.
2013 seems to be a fruitful year for Tesla which started its initial public offering in three years ago but dubbed as the "Apple" of the automotive industry.
“Tesla’s the Apple of automotive -- it’s managed to cross the automotive and technology fields to become this hot commodity,” said Alan Baum, an independent auto analyst at Baum & Associates in West Bloomfield, Michigan to Bloomberg. “Justified or not, the expectations for this company are now very high.”
Another possible reason for the rise is a recent report that Tesla's sales performance exceeded that of other luxury cars in California-- the largest U.S car market.
The California New Car Dealers Association released figures comparing the sales performance of luxury cars in the Golden State for 2013. Tesla tops the list at 4,714, followed by Porsche 4,586; Land Rover, 4,022; Volvo, 2,982; Lincoln, 2,230; and Jaguar, 1,254. The Model S sells for $70,000 per unit.
CEO Elon Musk is preparing to go global as it still sits 13th among global car manufacturers behind Kia, Suzuki, Mazda, and Fiat in terms of production and sales. It is also far from General Motors and Ford which has a market cap of $48.3 billion and $64.6 billion respectively.
