Since the US election on November 5, 2024, Tesla shares have experienced a remarkable surge, increasing over 100%. An investment of £10,000 in Tesla shares would now be worth approximately £6,900, yielding over $100 (or £82) daily. This impressive performance has propelled Tesla's market capitalization to around $1.33 trillion, surpassing traditional automotive giants like Toyota and Ford [71daa133].
Elon Musk's net worth has also seen a significant boost, nearing half a trillion dollars, amid the stock's meteoric rise. However, analysts remain divided on Tesla's future prospects. Of the analysts covering the stock, 13 have recommended a strong Sell, 18 suggest Hold, and 19 advocate for a strong Buy, indicating a mixed sentiment in the market [71daa133].
Despite the positive momentum, there are concerns regarding Tesla's ability to sustain its high valuation without substantial sales growth. The stock's price-to-earnings (P/E) ratio exceeds 100, placing it in speculative territory, which raises questions about its long-term viability [71daa133].
In the context of recent legal challenges faced by Musk, including the rejection of his $55.8 billion compensation package at Tesla and ongoing scrutiny from the SEC, the company's stock performance remains a focal point for investors [37cc0808]. As the market continues to react to these developments, Tesla's trajectory will be closely monitored by both analysts and shareholders alike.