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Summary
- Tesla shares has seen some of the sharpest moves in the last one-and-a-half years
- Of late, the shares have not performed well, stands with a negative YTD return
- Between 8 February and 8 March 2021, the stock of Tesla plunged 34.79 per cent
- While it slipped 25 per cent from 13 April to 13 May 2021, after staging marginal recovery
Shares of Tesla Inc (NASDAQ: TSLA), the Elon Musk-controlled electric vehicle maker, has witnessed some of the sharpest moves in the last one-and-a-half years, largely driven by the growing acceptance and demand of hybrid vehicles across the world and the encouraged usage of clean energy solutions by the governments.
Tesla, superintended by the billionaire business magnate Musk, has equally benefited from his leadership.
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While the massive uptick in the share prices has steered Elon Musk to the top in the billionaires list, crossing the likes of age-old cash rich businessmen including Microsoft’s Bill Gates, Louis Vuitton’s Bernard Arnault, Amazon’s Jeff Bezos, Berkshire Hathaway’s Warren Buffett and Facebook’s Mark Zuckerberg.
The pandemic-laden 2020 can be easily termed as the year of Tesla, in which the share prices recorded the wildest spurts in the history of there stock market journey since the IPO in 2010. The comparison to the issue price of $17 apiece apparently seems more bizarre. The stock of Tesla boasts a cumulative return of nearly 5,200 per cent, from the stock market inception to an all-time high of $900.40.
Of late, the shares of Tesla have not performed relatively well. On a year-to-date (YTD) scale, the returns are negative. The trading data with Nasdaq suggests the stock of Tesla has fallen 19 per cent in the present calendar year. Whereas, the shares are down by a little more than 36 per cent from its record high. The present share price of $571.69 (13 May 2021), is 36.51 per cent, lower as compared to record peak of $900.40.
Tesla shares (YTD performance)
(Source: EODHD/Others, Thomson Reuters)
The stock corrected sharply in a month’s period, from the date when Tesla announced that it will start accepting bitcoins to sell its automobile offerings. Between 8 February and 8 March 2021, the stock of Tesla plunged 34.79 per cent. Shares staged a marginal recovery in the following sessions, but cracked again. From 13 April to 13 May 2021, the stock slipped a little over 25 per cent.
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In 2020, the stock of Tesla emerged as the biggest gainer among all the heavyweight components included in the tech-heavy Nasdaq Composite index. It managed to register an annual return of nearly 700 per cent, vastly outperforming all the peers and the market index itself.
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As per the historical data available with the Nasdaq, shares of the automobile conglomerate and clean energy firm skyrocketed more than 2,000 per cent between June 2019 and January 2021. In the second half of the 2020, the large part of the share price appreciation was thoroughly backed by the quarterly financials and the better-than-expect forward looking guidance.
