Tesla just had its largest one-day gain since 2013, with the company's stock surging by almost 20 percent on Monday. The surge was mostly due to increased investor confidence in the stock following the release of Panasonic's better-than-expected quarterly profits.
The rise in the company's stocks was also partly predicted by analysts, which expects that it would increase ten-fold by 2024. Since June of last year, Tesla's stocks have jumped by over 300 percent, boosted by the company's better-than-expected financial results over the past few years.
Since it reported its second better-than-expected consecutive quarterly profits, Tesla's shares have continued to rally. The establishment of its Gigafactory in Shanghai, which bolstered its capability to cater to its Chinese customers, also managed to increase investor confidence.
The latest surge in the company's stocks was brought about Panasonic's first-quarter profits, which managed to exceed analysts' expectations. Panasonic's performance was welcomed news by investors given its years of production troubles and delays.
Panasonic Chief Financial Officer Hirokazu Umeda mentioned in the company's earnings briefing that it is quickly catching up to Tesla's production pace. The acceleration of its production has managed to greatly reduce its costs and erase losses in the process, hence its better-than-expected results. Musk had previously stated that battery supplies have constrained its vehicle outputs in the past, particularly its Model 3 sedans.
Panasonic became one of Tesla's major battery suppliers in 2010. The company partnered with Tesla to establish its first Gigafactory in Nevada in 2014, marking its major shift from being a low-margin consumer electronics manufacturer to become a major automotive components manufacturing. Unfortunately, the $1.6 billion Gigafactory investment failed to produce returns, at least for the first few quarters of its establishment.
Analysts from investment management firm Ark Invest have predicted that Tesla's stocks could hit $7,000 by 2024. The forecast is on the assumption that the company would reach a market capitalization of $1.3 trillion during that time. This is also based on the assumption that Tesla would be able to launch its planned fleet of autonomous taxis globally.
Musk initially revealed this plan back in April, mentioning that Tesla's robotaxis, which will use no human drivers, will be rolled out first in the United States in 2020. The claim was met with wide criticism from experts, who claimed that Tesla's technology was nowhere ready to accomplish its plans.
