Tesla's Shares Raised by 20% in a Day

The jump in cost is influenced by the financial report of the battery supplier, Panasonic.

Panasonic has published a quarterly financial report, in which it showed a profit for the first time since the partnership with Tesla.

Tesla's Shares Raised by 20% in a Day photo 2

Tesla shares rose 20% on Monday, showing the biggest one-day gain since 2013. The price of one share was $780. At the same time, the EV manufacturer and investors predict that the share price will increase 10 times by 2024.

The trend of rapid growth is really noticeable: Tesla’s shares have gained more than 30% in price since the automaker published its second quarterly earnings report. Tesla, Inc. is more expensive than General Motors and Ford combined. The market capitalization of Tesla has exceeded $100 billion and has come close to the industry leader, namely Volkswagen AG.

The new Tesla factory in Shanghai plays an important role in the positive changes, but the latest rapid increase is due to Panasonic Corp. After numerous delays because of its own suppliers, Panasonic has finally reached the level of battery production that the automaker needs.

Tesla's Shares Raised by 20% in a Day photo 3
We are catching up as Tesla is rapidly expanding production

Panasonic CFO Hirokazu Umeda said at a briefing, referring to battery production and processes at the Nevada factory, which is a joint venture between the two companies.

Last April, Elon Musk said that the production of batteries was the reason for the restriction in the production of the Tesla Model 3. Having got rid of these restrictions, Tesla is rapidly increasing production volumes to meet the demand for its electric vehicles.

According to the investment management company Ark Invest, Tesla shares will grow in price to $7,000 by 2024.

Tesla entered into an agreement for the supply of batteries to its factory in Shanghai with South Korea's LG Chem Ltd. and China's CATL. Meanwhile, Panasonic has agreed a partnership with Toyota Motor Corp. to develop and manufacture batteries for EVs.

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