In a landmark moment, Tesla’s (TSLA) - Get 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.
"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.