Trading in shares of electric vehicle manufacturer Tesla Inc. (NASDAQ:TSLA) have gotten frothy.
Almost 40,000 accounts on the Robinhood trading platform added shares of the automaker during a single four-hour span on Monday. That frenzied activity led to some big swings in Tesla’s share price. At one point, Tesla’s share price was up as much as 16% before paring gains through the day and finishing the trading session 3% lower.
Tesla’s stock price has surged 56% over the past 10 days to just under $1,500 U.S. per share
So far this year, Tesla’s market cap has risen by $202 billion U.S., pushing Elon Musk past Warren Buffett in rankings of the world’s wealthiest people. The stock is now trading at 166 times estimated earnings over the next year, 20 times book value and seven times sales.
More than 450,000 users on the Robinhood app now hold shares of Tesla in some form. That makes it the 10th most popular stock on the platform, ahead of Amazon.com Inc. (NASDAQ:AMZN), which is held by 358,000 Robinhood users.
Interest in Tesla shares over the past few weeks has been driven by the potential reveal of a new battery technology this September and speculation that the stock is going to be added to the S&P 500 Index.
Tesla remains the world’s most shorted stock, with more than $20 billion in bets that the company’s share price will fall.
