Share prices of US electric automaker Tesla surged passed the $1,000-mark on Wednesday, following news of the accelerated production of its fully-electric Semi trucks. Tesla chief executive officer, Elon Musk, mentioned in a tweet early Wednesday that the company was now going "all-out" on the production of its trucks, resulting in a flurry of investors buying the stock.
At Wednesday's closing, Tesla's stocks were at $1,025 per share. During the day, the stock had reached a record high of $1,027.48 per share. The stock then corrected the next day and hovered around $990 per share.
The sudden surge in its stock price propelled the company's market valuation to around $190 billion, just a few billion shy of Toyota's $210.5 billion market valuation. Year-to-date, Tesla's share prices have gained a massive 140 percent, a stark contrast to the direction of other stocks in the industry.
Tesla's fully-electric semi trailer truck, which was originally unveiled in November 2017, is expected to significantly change the country's logistics industry. The company originally stated that the delivery of its new Semi would be in 2019. Tesla has since pushed back deliveries to around 2021.
Major US logistics and retail firms have already placed orders, including companies such as Walmart, UPS, and JB Hunt Transport Services. Tesla had priced its new electric trucks at around $150,000 for the base model. Reservations were set at $20,000 upfront.
News about the production schedule of Tesla's Semi flew under the radar in recent months as much of its focus was turned to its new Model Y electric compact sports utility vehicle (SUV). Tesla had also been increasingly focused on expanding its business in China, where its Shanghai-made Tesla Model 3 is selling in record numbers.
Musk's statement on Twitter came as share prices of its would-be rival Nikola Corp surged following its debut last week. The Arizona-based company is also aiming to build battery-electric and hydrogen fuel cell-powered long-haul trailer trucks that will compete directly with Tesla's Semi. Nikola had announced that it will start to accept orders for its trucks on June 29.
According to reports citing a memo to employees, Tesla is planning to move the production of its Semi's battery and powertrain to its factory in Nevada. The production of the new truck was expected to at Tesla's next US factory, which it had narrowed down to be located in either Texas or Oklahoma. The exact volume of trucks Tesla will be producing is not yet clear and the company has yet to reveal details regarding its accelerated timetable.