The economic recovery we keep hearing about may not feel like much of a recovery for most of us, but Wall Street is riding high on a wave of optimism, especially in the car industry. One of the unlikely heroes of the Wall Street comeback is Tesla Motors, whose shares hit a record high of $53 this week. But will the wave last?
Yesterday morning Tesla shares briefly went over $53 a share, about three times the initial public offering price of $17 a share when Tesla went public back in June of 2010. Shares of Tesla are up 50% this year alone, with Model S production chugging along and CEO Elon Musk finally reporting a (very small) profit. After years and years of blowing through millions of dollars, Tesla finally seems as though it can stand on its own two feet as a car company. As of this writing, Tesla stock is trading for about $50 a share.
This stock market success stands in stark contrast to competitor Fisker Automotive, which was recently declared one of the worst venture capital disasters in recent history. But the road ahead is still full of potholes and detours that could derail Tesla’s hard-earned success. With Musk promising to deliver the Model X SUV next year, and a more-affordable sedan by 2017, Tesla Motors still has a long way to go.
But hey, at least Wall Street is happy, right?
Source: Motley Fool