In just over six months, from June 2019 to January 2020, the share price for the U.S. automaker Tesla (TSLA) jumped 219% from around $178 to around $569.

Thus TSLA has become the second world auto manufacturer in market value behind the Japanese Toyota, and its founder and CEO Elon Musk could pocket $350 million in unrealized capital gain.

With a personal wealth currently estimated at $32 billion, he should indeed receive 1% of the capital of TSLA if he succeeds in maintaining its capitalization equal to or greater than 100 billion dollars for at least six months.

The recent improvement (link) in production and delivery times associated with the increase in available cash and operating margin propels optimism which could however prove insufficient to sustain such market enthusiasm for TSLA in the longer term.

While the CES at Las Vegas announced that electronic vehicles would account for the majority of new vehicle sales by 2030, many believe that TSLA will benefit fully from its pioneering position in this part of the automotive sector.

Technical analysis on 01/23/2020: the rise in TSLA share price has been vertical since the momentum exceeded its upper limit in November 2019, also the MACD shows that TSLA has moved into overbought territory since mid-December 2019.

Contents published on Cyceon.com do not constitute investment advice.

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