Tesla adds $ 100 billion in value as tech stocks rebound | Business news
Tesla has seen a rebound in U.S. technology stocks as its shares rose as much as 20%, in part due to numbers showing higher sales in China.
The Elon Musk-led electric car company was also bolstered by an analyst upgrade and a broader investor sentiment rebound, bringing the tech-heavy Nasdaq index up nearly 4%.
Tesla’s stocks have been on a wild ride in the past few months, and Mr Musk became the richest person in the world for a time when the stock was previously soaring lose the crown as it slipped back from its heights.
On Tuesday, it was the standout among a multitude of technology stocks that rebounded from heavy losses in recent weeks.
Apple, Amazon, and Microsoft were all among those making profits.
They’re among those stay-at-home stocks that made big winners during the pandemic but have hit those highs more recently.
In part, this is because investors are now pricing in faster economic growth, higher inflation, and higher interest rates.
These higher interest rates make it relatively less attractive to park cash in technology companies – investments that are often a bet that those companies will lead profitable years into the future.
The shift in sentiment pushed the Nasdaq into what was known as the “correction” zone earlier this week, meaning it was more than 10% below its February 12th high.
The index rallied on Tuesday as the markets continued to adjust.
Tesla has been at the heart of market volatility for the past few months and has become the most valuable automaker in the world over the past year despite producing a fraction of the vehicle volume of more conventional competitors.
It was reported recently very first annual profit – and only then thanks to the sale of emission certificates to less environmentally friendly companies.
Tesla’s value has also been linked to Bitcoin’s unsteady fate after a was revealed Investment of $ 1.5 billion in cryptocurrency.
Tuesday’s jump, which increased market cap by more than $ 100 billion, came after sales of its China-made vehicles jump from 15,484 in January to 18,318 in February.
Tesla was also backed by an analyst who upgraded its stock to “buy” from neutral.
Stocks are still more than 20% below their record high in January, but are up 70% in the past six months.
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