Tesla Stock [TSLA] Closes At New 52 Week High — What Caused This & Does It Matter?
Credit to Author: Vijay Govindan| Date: Tue, 17 Dec 2019 07:25:51 +0000
Published on December 17th, 2019 | by Vijay Govindan
December 17th, 2019 by Vijay Govindan
For those who own Tesla stock*, the drama of the share price seems to be extra drama beyond the drama associated with the company’s growth. Many would say the share price volatility is unwelcome drama. Others let it go, like water down a goose’s back.
The superficial reason bandied about today for TSLA’s strong rise is that noted bear Dan Levy of Credit Suisse acknowledged Tesla’s lead in electrification and software. Analysts make prognostications all the time. Most are not newsworthy. It’s hard to think such an acknowledgement would cause Tesla shares to rise $23, or close to 6.5% higher on the day. Many times, the market goes up for unknown reasons, and people scurry about to find one news item as the source. Given the complexity of the market, that’s a fool’s errand.
Let me list some reasons why Tesla may have gone up today:
Now that we have covered some of the reasons TSLA hit a new high, does it matter? Yes, it matters, and no, it doesn’t. It matters that Tesla and cleantech are doing well and getting more attention. That encourages others to pursue cleantech. It helps the employees who own Tesla stock and options, and employee morale helps the company.
No, it doesn’t, in that changes in stock price no longer have the ability to control if Tesla survives or fails. That ship has sailed. Tesla is a bonafide competitor, poised to stick around. And people have gotten quite used to Tesla stock price volatility.
Congrats to those who own Tesla shares! Here is to many more 52-week highs. There are quite a few tailwinds helping Tesla. The market is discovering those tailwinds and re-evaluating Tesla higher. That’s good for all of us, as it helps Tesla succeed in its mission, which is to accelerate the world’s transition to sustainable energy.
*Disclosure: I am long Tesla stock and long on Tesla cars.
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Vijay Govindan Vijay Govindan is a Cleantechnica writer part-time. Through his writing Vijay seeks to elevate the realized potential of humankind. Against human trafficking. Tesla Model 3 LR owner. His claim to fame is Tesla and Elon have commented, liked or re-tweeted an article he wrote with the Tesla community. Just once. 😉 https://cleantechnica.com/2019/06/23/our-new-tesla-myths-page/ #WeChooseTesla, #RenewableEnergy and #YangGang supporter. Long Tesla shares. Has a healthy skepticism of the Q branch of the Tesla investment community. Made it to one $tslaq block list. Follow him on Twitter @vijaygovindan17. If you read this far, wow, 👏🏽 and 🙏🏽.