New York

Elon Musk-led Tesla has added more than $200 billion to its market valuation in an 11-day run. Tesla this week has had some of its longest-ever winning streak on the Wall Street.

Advertisment

Elon Musk's Tesla's valuation boom: The factors at play

According to Bespoke Investment Group cited by Bloomberg, Tesla has been a "wild stock" over the years. 

Tesla shares jumped as much as 7.5 per cent to $252.42 Friday, bringing this year’s surge to 103 per cent. This week’s 17 per cent advance so far is set to be the best since January. 

Advertisment

Also read | Elon Musk choosing India over China? Big meet to decide Tesla's road to New Delhi

The valuation boom comes after General Motors announced that it will adapt its EVs to Tesla's Superchargers. The development followed a similar move from the Ford Motors, making it sort of an industry standard in the United States.

Also watch | Elon Musk launches new AI startup to compete with OpenAI

Advertisment

×

"More people buying EVs (whether they be GM or Ford for that matter) increases the likelihood that they buy Teslas," RBC Capital Markets analyst Tom Narayan wrote in a note on Thursday, Bloomberg reported. 

"A rising tide lifts all boats and if consumers see their neighbour having an EV, they are more likely to buy one themselves - and this increases the chances they buy a Tesla."

Tesla's rich valuation: AI boom or self-driving technology?

According to Cathie Wood, Chief Executive Officer of ARK Investment Management, the Artificial Intelligence could play most important role in Tesla's future stock boom. It could reportedly help its stock price to about $2,000 in 2027. Without that, Wood expects the stock to be worth only about $400. 

About self-driving technology, Tesla CEO Elon Musk himself suggested last year that the company’s value was almost fully dependent on cracking the code for self-driving. "That really is the difference between Tesla being worth a lot of money and being worth basically zero," Musk said in an interview in June 2022.

WATCH WION LIVE HERE

You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.