Tesla’s stock (TSLA) surged 3% after the stock split today — making the company now worth over $430 billion.
After a wild opening with over 16 million shares worth over $7 billion changing hands within the first 30 minutes of trading, Tesla’s stock stabilized up roughly 4% at around $460 per share.
It was the first time the stock traded after its 5-for-1 split, which was announced earlier this month and helped keep the momentum of an already spectacular run.
Following the stock split, a look at Tesla’s five-year stock price chart adjusted for the new price gives a new perspective at just how significant its 2020 run has been so far:
Over the last year, it results in a 900% increase in stock price.
During that time, Tesla’s revenue has remained mostly flat amid the global pandemic, but it has fared better than peers in the automotive industry over the same period, and the company managed to keep making small profits.
As we previously reported, the bulk of the price surge appears to be linked to a short squeeze, with people betting against the electric automaker have been jumping ship in masses over the last year.
CEO Elon Musk has been predicting the short squeeze for years. Musk called it a “next-level short burn of the century.”
Electrek’s Take
Sounds like he was right.
Nothing comes to mind as a bigger short squeeze than this in recent memory.
It looks like the TSLA shorts are down about $30 billion in 2020 alone.
As an investor, that’s the kind of thing I like. It’s easy to forget that when you are making money on the stock market, you are making it off someone else.
That can be a problem sometimes.
But not this time. I have no problem making money off people betting against a company that is trying to accelerate the advent of electric transport and renewable energy.
Disclosure: I am long TSLA.
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