As the stock market is at its peak, the Tesla stock has seen an impressive rise, witnessing a surge of over 400% last year. This has sparked a wave of speculation among investors as to whether this is a strong pop or plunge in the making.
Analysts and investors have weighed in with their views, some remain confident that the stock price will continue to rise while others fear that it is overhyped and may plummet in the future. One major factor in the investor’s equations is the SolarCity integration with Tesla Motors, which is seen as a major strategic move.
The developments in the autonomous driving technology, improvements in battery technology, and self-charging have added to the positive sentiment surrounding the stock. With that said, it’s worthy to note that in December of last year, Tesla reported a 5 percent drop in vehicle deliveries, falling short of estimates and weighing on the stock.
On the flip side, the rise in the price of Tesla’s shares can be linked to the huge surge in investments of companies like Apple and Google into autonomous vehicles. At the same time, the booming stock market also works in Tesla’s favor.
All in all, whether the Tesla stock will see a strong pop or plunge remains to be seen but one thing is for sure, the investment interest is growing significantly. With all the factors and developments in play, it’s easy to understand why the expectations of the stock are high.