February 3 (UPI) — Shares in electric car maker Tesla hit new highs in January, sending short-stakes investors to a record $5.8 billion, according tomedia reports. Tesla’s share stakes have been strong since it made a profit in the third quarter of last year. Since 2020, the company’s share price has been above $420, surpassing the $420-a-share privatization price proposed by Tesla Ceo Elon Musk last August.
In early January, Tesla had a market capitalisation of $88.706 billion, more than GM and Ford added to the market capitalisation of the two carmakers ($86.321 billion). This was helped by the company’s third-quarter profit, progress at new plants in China and better-than-expected car deliveries in the fourth quarter of last year.
Tesla’s share price has risen incrediblely in the past six months. Since falling to a low of $179 in June 2019, the company’s share price has risen more than 200 per cent, costing shorts $16.9bn, according to analysts at S3 Partners, a fintech and analytics firm.
Tesla’s share price rose in part because the company’s manufacturing operations in China grew faster than expected. In October, the company announced that its Shanghai-based Gigafactory 3 had started production of the Model 3 and said its new Model Y would start production this summer, ahead of schedule. In addition, the company reported a profit that exceeded Wall Street expectations.
Musk has long attacked short-sellers, accusing them of trying to destroy his electric-car company, arguing that their activities should be illegal and even taking legal action against a critic who followed and filmed parts of Tesla’s cars.