In a landmark moment, Tesla’s (TSLA) - Get Tesla Inc Report stock raced towards—and hit—the $1,000 mark on June 10. Exactly one year ago, Tesla’s stock was a mere $212 a share. That’s a monumental increase of 371%.
In February, Tesla’s stock crept up to $961, but then fell sharply due to the coronavirus pandemic. However, since then, the stock has surged back towards—and beyond—pre-virus levels.
Tesla’s stock has been largely driven by investors' faith in the company’s dominant position in the electric vehicle industry.
In late May, Morgan Stanley analyst Katy Huberty compared Tesla to Apple undefined.
"View Tesla in a way they viewed Apple 20 years ago: a company that thinks differently, that is incredibly innovative in a category that needs a spurt of innovation. That creates investor interest. If there’s a path to profitability and reason to believe scale will continue to increase, then tech investors tend to not care as much about valuation and/or are will to look multiple years into the future when scale and profitability will support current valuation," Huberty wrote in a note to clients.
This certainly seems to be the case, as Tesla hits $1,000 a share and shows little to no sign of slowing down.