After rising another 7.84% on Friday, Jan. 8, Tesla (NASDAQ:TSLA) is rewarding investors with a 1,155% return from 52-week lows. The stock is now another $170 billion away from the $1 trillion market capitalization.
In all the years when bears attacked the company for its lack of positive cash flow, profits, and increasing debt, last week marked another defining moment.
The week before, Tesla posted Q4/2020 deliveries of 180,570. For the year, it produced 509,737 units and delivered 499,550. In hindsight, selling the Model 3/Y at a lower price point lifted revenue and unit sales.
The stock is immune to anything bears through at it. And the more the stock rises, the more novice investors it attracts. With the fear of missing out setting in, more money will chase the stock, sending it to new highs daily. Fundamentally, gas-powered vehicles outnumber Tesla EVs. But premium brands like Mercedes-Benz and Audi do not have a comparable EV.
Without any competition on the luxury end, Tesla’s margins will eventually expand. At the low end, unless China-based EV suppliers enter the U.S. market, Tesla has nothing to worry about.
Tesla may have bubbled EV stocks higher and continues to enjoy daily new highs. Nothing is stopping it from falling by much. If it does, buyers will just buy the dip.
