Tesla News: Why The Company's Stock Price Soared Above $900 For First Time

Shares of Tesla Inc. (TSLA) on Tuesday soared above $900 for the first time, climbing as much as 16% during trading. The electric vehicle company has had a strong week so far, with its share price surging more than 20% above $700 on Monday.

Investor confidence was boosted at the beginning of the week, after Panasonic Corp. said that the car battery factory it operates with Tesla has finally turned a profit.

“By next year, we hope profits will stabilize,” Panasonic’s chief financial officer Hirokazu Umeda said about the Nevada plant.

“Investors are now starting to believe that Tesla can make mass-volume electric vehicles, and automakers, battery makers and suppliers can make money from EVs,” said Cho Hyun-ryul, an analyst at Samsung Securities.

ARK Invest, a small investment firm, said that it expects Tesla share price to be at least $7,000 by 2024, with shares hitting as much as $15,000 in the most bullish case. ARK believes that Tesla will introduce an autonomous self-driving taxi system, known as robotaxis, which would dramatically boost revenue for the company.

Tesla CEO Elon Musk has promoted the robotaxi idea but it’s unclear when the concept would be rolled out.

Tesla stock began surging in the fall after posting a profitable third quarter. The company also began building vehicles at its factory in Shanghai, bolstering its China operations. In addition, Tesla reported strong fourth-quarter results in January.

Short sellers of Tesla have taken a big hit, losing a record $5.8 billion in January alone.

The California-based automaker's Model 3 was the best-selling electric car of 2018.