Tesla Inc. starts the new week with another upward rally of 3% in extended trading on Monday

Following massive gains in the stock market, a relatively smaller decline in Tesla’s stock towards the end of last week was previously construed as a probable stop to its upward rally. With the start of the new week, the U.S electric car manufacturer, however, has made it clear that it is not yet done with having fun in the stock market.

In an announcement on Monday, Shanghai’s municipal government offered reassurances to businesses including Tesla that authorities will play their crucial role in bringing operations back to normal for companies after the Coronavirus crisis is over. Amidst the health emergency, operations for multiple businesses are currently seeing a temporary halt in China. Shanghai’s reassurance initially fueled a 9.5% growth in Tesla shares. Receding back later in the day, the stock settled around 3% daily gain.

Tesla Marked Over 100% Growth In Its Stock In The First 35 Days Of The New Year

Analysts are still in a shock concerning Tesla’s unmatched rallies in the past 40 days. Opening the year at $430 per share in January, the company recorded a year to date high of $887 last Tuesday that marked over 100% growth in just above a month. At the time of writing, Tesla is currently exchanging hands at $771 in the stock market. The 3% gain on Monday, as per the experts, is likely to be a foundation for Tesla to keep its upward trend in the upcoming weeks.

Towards the end of 2019, analysts had expected Tesla to drop back to around $250 per share in 2020. With its factory in Shanghai and another one expected to be established in Berlin that is likely to push the global production significantly higher for Tesla, the company, however, doesn’t seem to be in a mood to lose in the stock market.

Elevation Partners’ Roger McNamee’s Comment On Tesla’s Performance

Elevation Partners’ co-founder and managing director Roger McNamee branded Tesla’s performance as remarkably similar to history and stated:

“I look at it and say, ‘It may be the battery that’s driving the business, but it’s jet fuel that’s driving the stock.’ And it just feels like 20 years ago. For those of us who’ve been around a while, the late ’90s saw a lot of that kind of action, and it’s really fun to watch. I can’t imagine owning the stock right now just because what do you [do]? I mean, who knows? It’s so wild. And this is what makes markets great, because, at the end of the day, it’s about buyers and sellers. And the shorts can sit there and give you 100 pages of good data why the stock is overpriced, and in the short run, it doesn’t make any difference because there’s a lot of enthusiasm. You look at this and go, ‘This is obviously an extraordinarily well-discovered stock.’ It’s an incredibly high-priced stock and it has fans who just support it. It’s a cult-like situation, and Wall Street gets these from time to time. And you know what happens at the end. Eventually, it does come back down to something realistic, but when does that happen? It doesn’t happen until a lot of people have been burnt to a crisp.”