Tesla Inc. stock soared again on Friday, pushing its weekly gains to nearly 35% as investors applauded the electric car maker’s earnings report and heard reassurances from CEO Elon Musk that demand isn’t an issue for Tesla.
Tesla’s stock closed at its highest point since December 9, when it was priced at $179.05. The shares also extended their winning streak to six days and have risen 41% during that span.
The stock’s 33% weekly gain was its largest since a 40.7% rise on May 10, 2013.
On Wednesday, Tesla reported mixed quarterly results: revenue slightly below Wall Street expectations but optimistic production forecasts by the end of 2023.
In a brief statement, Chief Executive Elon Musk said he wanted to “put the concern to rest” that Tesla is going through demand problems. January orders are more vital than ever—with demand far outstripping Tesla’s production rate.
Read also: Tesla stock rises after analysts say latest results may quiet the bears.
Tesla recently reduced its prices for electric vehicles in the U.S. and Europe by as much as 20 percent, depending on region and model. Still, Musk said that these cuts would make his company’s cars more appealing to consumers.
A big announcement from Tesla on Wednesday was the revelation of a “next generation” vehicle platform, which will be revealed at an investor day on March 1.
Don’t miss: Wall Street reacts to Tesla’s price cuts
On Friday, Morgan Stanley analyst Adam Jonas added his voice to those who think that Tesla Motors’ recent price cuts may have ushered a new era in electric cars and heralded “a great deflation” for the industry.
“It’s still early days, but significant design and manufacturing technology changes have enabled profound deflation in the price of electric vehicles. We believe history will reflect upon this moment as a turning point towards mass adoption of EVs,” Jonas said.
The rise of electric vehicles may significantly impact the component and vehicle market segments. For example, according to Ghosh’s research, changes in industry composition and market share could take years; however, he believes that some manufacturers’ plans for manufacturing EVs might need to be reconsidered sooner than expected.
Ford’s Model T, introduced in 1908 and ushered in an era of mass production at low prices, caused automobile prices to fall even more sharply.
Though Tesla shares have climbed about 35% in the past year, that increase has been dwarfed by losses for the broader market. The S&P 500 index is down around 5%.
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