Forward-looking: Shares of Tesla Inc. are surging this week as investors are getting behind CEO Elon Musk's vision of a greener future. Tesla went through its fair share of growing pains in the early years but some investors believe the stars are finally aligning for Elon Musk and his electric automaker. Could this indeed be the beginning of the electric revolution?
To put the rally into perspective, Tesla's stock closed at $443.01 on January 3, 2020. Now just one month later, it's trading at $924.48. Much of the growth has come during the past week as the stock opened at just $576.00 on January 29. Onlookers and investors alike are now wondering just how high it can go. Some believe this is just the beginning.
As Reuters highlights, the rally is likely the combination of a couple of factors. Tesla announced favorable fourth quarter financials last week but more so, battery partner Panasonic on Monday revealed that its battery venture with Tesla was in the black for the first time.
LG Chem and Chinese battery giant CATL also signed deals with Tesla over the past week, signaling the end of its exclusive agreement with Panasonic. CATL's deal runs from July 2020 through June 2022 according to Reuters.
Tesla's late rally has pushed the company's market cap north of $165 billion.
Investor Ron Baron recently appeared on an episode of CNBC's Squawk Box to discuss the stock's surge. That full interview with host Rebecca Quick can be viewed above.