Tesla’s shares hit an intraday high of $420.42 on Monday, according to the company in the early hours of December 24. Tesla shares rose 3.36 percent to a new high of $419.22. Tesla’s share price soared in response to the third-quarter earnings rise and the smooth progress of China’s domestic ization program.
On October 23rd Tesla reported a net loss of $702 million in the first quarter and a net loss of $408 million in the second quarter, while its net profit in the third quarter was down more than 54 percent from 2018, but it posted a net profit of $143 million.
Tesla has agreed a five-year loan of up to 10 billion yuan with Chinese banks, with Tesla planning to use some of the money to repay the previous 3.5 billion yuan, with the rest going to the Shanghai plant and its Chinese operations, Reuters reported.
After Tesla’s share price broke through $420, Musk quipped on social media, “Wow… The stock price is really high.
In August last year, Mr Musk’s suggestion on social media that he would privatise the company at $420 a share was “funded” and led to a lawsuit by the Securities and Exchange Commission for misleading investors.
Over the next 16 months, Tesla’s share price fell to a three-year low of just under $177 a share in June, then recovered and broke through $420 on Monday.
In September, Tesla reached a settlement with the Securities and Exchange Commission, and Musk will continue as Chief Executive officer of Tesla, but will have to step down as chairman.