The market value of EV leader Tesla has surged by nearly $300 billion in just the past month.
The colossal gains follow fresh deals with GM and Ford that allow them access to Tesla’s supercharger network.
Elon Musk’s carmaker had a market capitalization of $813.9 billion as of Wednesday.
Tesla’s stock is on a tear again, with Elon Musk’s electric-vehicle maker adding an eye-popping $287 billion in market value in just the past month.
The spectacular surge in market capitalization tracks a record 13-day winning streak for the stock to highs unseen in eight months. The shares surged 26% in June alone, rebounding a stunning 68% from late-April lows, to Wednesday’s closing level of $256.79.
That’s boosted the EV maker’s market cap to $813.9 billion, from $527.2 billion as of mid-May, according to Refinitiv data.
The impressive stock rally partly reflects increasing investor optimism about Tesla’s ability to monetize its EV charging technologies and infrastructure, adding to income from car sales. Musk’s company recently finalized deals with General Motors and Ford to allow them access to its supercharger network.
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The move is aimed at ensuring Tesla’s competitors will be on “equal footing,” the billionaire entrepreneur said in a Twitter discussion.
“Tesla aspires to be as helpful as possible to other car companies. We made all our patents freely available several years ago,” Musk said in a tweet. “Now, we are enabling other companies to use our Supercharger network. Also happy to license Autopilot/FSD or other Tesla technology,” he added.
Wedbush predicts more Tesla stock gains
Wedbush Securities expects the charging-tech deals will help the Tesla stock surge 17% from current levels to $300 a share. “For Tesla, we believe this is a large monetization opportunity for the company in its supercharger story, adding to its growing sum-of-the-parts valuation,” analyst Dan Ives wrote in a recent note.
He added that Tesla’s price cutting mechanism in the US and China will also help spur demand for Tesla vehicles, further boosting the company’s upward trajectory.
The EV maker’s stock gains are also in line with accelerated advances in tech shares in recent weeks, as investors stepped up bets that the Federal Reserve would pause its interest-rate increases this month. The tech-heavy Nasdaq 100 index has climbed 12% since mid-May.
The central bank kept borrowing costs on hold at its meeting this week, snapping a series of 10 consecutive increases aimed at taming inflation that hit 40-year highs in 2022.
Musk recently poked fun at the legendary investor Bill Miller for shorting Tesla stock when it was less than half its current value.
In a tweet last weekend, he replied with a laughing emoji in response to a CNBC interview in early January in which Miller said that he was betting against the carmaker because of increased industry competition.