Tesla stocks surged by a massive 21 percent on Tuesday, Feb. 11, reaching a record-breaking market value of $165 billion.
CEO Elon Musk also gets himself a huge payout deal worth $30 billion, as the stocks continue to soar. The company posted its second-consecutive quarterly profit on Wednesday, Feb. 12, slashing a major accomplishment while competing with industry giants BMW and General Motors.
Shares have rallied over 50 percent after the quarterly profit was posted. In June last year, the company’s shares have already climbed 400 percent, with investors flooding in for the Shanghai car factory. The market capitalization of Tesla is twice the combined value of Ford and General Motors. That is how the company is doing well in the automotive industry.
This week has been crazy for the company’s stocks as Monday trading went up by approximately 9 percent, hitting $819.99 per share. By Tuesday, shares traded for a 2 percent increase.
Because of the good trading performance of the company, experts believe that more investors are already heading for the buy-in, particularly Google’s parent company Alphabet. Speculations circulating that Alphabet could buy Tesla.
Before, it is no secret that Google considers buying Tesla for $5 billion. With the on-going market performance, the value of the company now reached $160 billion; far from what Google is offering.
Another reason for the stock trading increase is Panasonic Corp’s statement that the automotive battery venture with Tesla became profitable for the first time. Investors soar in, in the hopes of doubling profit over time.
CEO Musk owns 34 million Tesla shares with a compensation package to let him buy another 20 million shares. If Tesla’s stocks will be consistent, Musk will be the richest man in the world.