Tesla shares rocket as electric car stock ends slump
Shares in electric car firm Tesla shot upwards nearly 20 per cent today, bringing an end to five days of losses.
Having shed a third yesterday, the stock rallied in dramatic style today, picking up 18.6 per cent amid a wider rally in Nasdaq-listed tech stocks.
Since hitting an all-time high on 26 January, the Elon Musk-founded firm fell sharply in the past few days, the third time in the past year that it has suffered a drastic correction.
As a result of the plunge, the California-based firm saw its market capitalisation fall $300bn to $550bn.
However, the correction now looks a thing of the past, with Tesla now trading at $667.79 per share, up from $563 yesterday.
Heavyweight tech stocks have been undergoing consistent losses since the middle of February, when the Nasdaq closed at a record high.
However, investors today looked to put their fears behind them, resulting in the index picking up 1.5 per cent so far today.
As frequently has been the case in the past, Tesla has outperformed the rest of the market – both on the way up and the way down.
With the stock’s surge based on hopes that it would expand production at a faster rate, Musk on Saturday tweeted that an update on Tesla’s planned Cybertruck pickup would likely be provided in the second quarter. The update had seemed to trigger the latest plunge.