Tesla's 'Insane' Stock Run Making a Fortune for Elon MuskNewser — Newser Editors
Tesla's stock had an epic day on Monday with a rise of 19%. Tuesday might end up being even better. CNBC reports that Elon Musk's electric-car company surged as much as 20% in early trading to more than $900 a share.
“I just can’t believe this freaking stock," Roth Capital analyst Craig Irwin said on the network's Squawk Box. "It's insane." He attributed at least some of the meteoric rise to investors, often from major institutions, jumping on the bandwagon for "fear of missing out." All of this is great news for CEO Elon Musk, of course, whose fortune grew by $4.7 billion on Monday alone to $41 billion, reports the New York Post.
CNBC cites two possible factors for the stock rise on Tuesday: Billionaire shareholder Ron Baron predicted Tesla will go above $1 trillion in revenue in 10 years, and "investors who bet against the stock scrambled to catch up." At Barron's, Al Root writes that the jump has "baffled investment pros," adding that analysts are playing catch-up in much the same way as investors. He, too, cites the factor of short-sellers, or investors who bet against Tesla. "There is a saying in the stock market that the market will cause the most pain for the most investors most of the time," writes Root. "It is a useful rule of thumb.
It means you never can tell what the stock market will do over a short period." In this case, investors were confident the rally couldn't continue after Monday's big surge, and it did precisely that.
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This article originally appeared on Newser: Tesla's 'Insane' Stock Run Making a Fortune for Elon Musk