Tesla Rose 25% During Wall Street’s Worst Quarter Ever

Elon Musk’s electric car maker was among the few bright spots in an otherwise very bleak winter quarter.
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Shares of Elon Musk’s electric vehicle maker Tesla, Inc.  (TSLA) - Get Report rose 25% during the first quarter, one of the few bright spots in an otherwise miserable three months for market bulls.

During the same period, the Dow Jones Industrial Average fell 23%, the S&P 500 20% and the Nasdaq composite 14.2%.

Tesla ended the quarter Tuesday at $524 a share, up from $418.33 on Dec. 31. The stock traded as high as $968.99 during the quarter.

The company took advantage of its run up ahead of the coronavirus stock crash to raise more than $2 billion in a secondary offering priced at $767 a share on Feb. 14.

It also delivered its first Model Y crossover vehicles and built its 1,000,000 car during the period.

The company is expected to report first-quarter delivery numbers sometime this week.

Tesla has guided for delivering 500,000 vehicles in 2020. But the abrupt onset of a global recession due to the spread of coronavirus has put that number in doubt. January sales in China were badly hurt by the start of the global pandemic there. 

Tesla later resisted closing its main factory in Fremont, Calif. after San Francisco Bay Area health authorities issued a shelter-in-place in the middle of the month to fight the spread of coronavirus. 

On March 6, Musk had tweeted “The coronavirus panic is dumb.”

The company eventually relented, but with Bay Area counties extending the order until May, production will likely remain halted for several more weeks.

On Tuesday Musk tweeted that Tesla has extra FDA-approved ventilators available, and will ship them wherever there is immediate need.