Shares of Tesla soared 9%, outpacing the tech-heavy Nasdaq’s 2.5% rebound.
Shares of Tesla soared 9%, outpacing the tech-heavy Nasdaq’s 2.5% rebound. The fortune of the world’s richest person, Tesla chief Elon Musk, soared by $14.5 billion Tuesday, as shares of his electric vehicle maker rose 9.4%, outpacing the tech heavy Nasdaq’s 2.5% rebound from last week’s decline. Analysts attributed Tesla’s outperformance to both comments by Musk and broader market factors. Referring to an interview Musk granted to Bloomberg at the Qatar Economic Forum Tuesday in which the Tesla chief highlighted the size of the company’s order backlog, Wedbush analyst Dan Ives said that “positive demand comments from Musk have resonated with the Street and given some confidence in this white knuckle macro environment.” In the interview, Musk reiterated his concerns about a recession and the need to downsize Tesla’s workforce, but investors appear to have zeroed in on his comments downplaying the threat of competition, and identifying supply constraints as the main obstacle to fulfilling the company’s robust demand.
