Tesla Inc. is that electric vehicle-producing company which has gone through lots of difficult phase throughout this whole year. However, yesterday was the best day for the company because, on Tuesday, Tesla managed to close up by more than 8%. Tesla inc is that company whose shares are keep falling from the last twelve months, and it has created a situation of panic among its investors. However, on Tuesday, Tesla’s shares performed well better than anyone’s expectations.
The bounce which Tesla managed to achieve has added more than 2 billion of market capitalization to the company’s total worth. Now Tesla’s market capitalization is going to be $34.2 billion. If we look back, then the whole year was not good for Tesla because of adverse earning reports and cash burnout problems. To produce a large number of electric vehicles, Tesla has burned lots of cash and other resources which is now hurting the company’s stock performance.
Tesla’s shares from last one year have fallen by more than 42%, which indicates the lousy situation of the company. Elon Musk, who with his controversial tweets, has also put Tesla on some occasions in danger. Many analysts have predicted the main problem of Tesla is its cash reserves. The company still don’t have enough money to survive for more than ten months, which Elon himself told his employees. Tesla Inc. is still trying to complete the production of model 3 cars early so that they can enter into market way before their competitors.
The company is already trying to implement cost-cutting strategies of cutting employees, and so far they have even let go of some of its staff. Elon was on the verge of trial when investors of the company found that he is taking funding from Saudi to make the company private. However, nothing happened like that, but if Tesla’s bad performance goes on continuously then Elon might prefer that option.
Jeffrey is acting editor in chief of AmazingNews24 with over seven years of experience in the field of online news under his belt. Jeffrey has worked with multiple media houses and is currently leading a team of journalists, sub-editors and writers through his entrepreneurial endeavours.