Why is Tesla’s share price so high?

Tesla’s share price at the end of May is $800, which is high for a company that made a loss of $862 million in 2019 – even founder Elon Musk thought so.

So what makes investors so sure that the firm will make huge amounts of money in the future?

Money reporter Marianna Hunt says it is not uncommon for a share price to continue rising even when experts think it’s hit its peak – just look at Amazon.

A share price isn’t a measure of current success, it reflects an expectation of future ones, she adds. People expect Tesla to post huge profits as electric cars become more popular.

But the company is more than a car manufacturer with cutting edge technology.

“Of course it makes cars, but it also makes a range of other technologies,” says technology reporter Matt Field.

“For instance it makes auto-pilot technology… solar panels, self-driving robo taxi technology and battery storage infrastructure.”

Get the latest headlines: https://www.telegraph.co.uk/

Telegraph.co.uk and YouTube.com/TelegraphTV are websites of The Telegraph, the UK’s best-selling quality daily newspaper providing news and analysis on UK and world events, business, sport, lifestyle and culture.


In This Story: Elon Musk

Elon Reeve Musk FRS is a business magnate, industrial designer, engineer, and philanthropist. He is the founder, CEO, CTO and chief designer of SpaceX; early investor, CEO and product architect of Tesla, Inc.; founder of The Boring Company; co-founder of Neuralink; and co-founder and initial co-chairman of OpenAI.

He has hit the headlines for a number of reasons including; marriage to Grimes, being sued by a cave rescuer, involvement in the promotion of cryptocurrency – mainly Bitcoin and Doge.

5 Recent Items: Elon Musk

Elon Musk: The Maverick Mind Behind SpaceX, Tesla, and the Quest for Mars

How elon musk went from tech billionaire to powerful political figure | elon, inc. Podcast 1

How Elon Musk went from tech billionaire to powerful political figure | Elon, Inc. podcast

Elon Musk is very much in charge of Tesla, him wanting more stock is ‘weird’: Ross Gerber

Elon Musk wants more control of Tesla: It’s ‘absurd,’ investor says

Elon Musk Wants More Control Over Tesla

Leave a Comment

We don't require your email address, or your name, for anyone to leave a comment. If you do add an email address, you may be notified if there are replies to your comment - we won't use it for any other purpose. Please make respectful comments, which add value, and avoid personal attacks on others. Links are not allowed in comments - 99% of spam comments, attempt to post links. Please describe where people may find additional information - for example "visit the UN website" or "search Google for..." rather than posting a link. Comments failing to adhere to these guidelines will not be published.