Tesla is on a roll. The electric car firm, headed up by CEO Elon Musk, ended last week with hefty gains on its stock price. While it started off looking as if Tesla stock could continue its five-week slide, news of improved Model 3 production rates and positive reception for its solar roof tiles came as the stock price rose 14.5 percent, its largest gain since the 17 percent in the week of February 28, 2014.
The news follows reports that Tesla Model 3 production grew faster than any other automaker in the modern era. The stock pushed past its previous Monday low of $248.12 to hit $299.72 by Friday, reacing a market cap of $51.7 billion by the following week. MarketWatch noted that Tesla Model 3 production actually missed company internal targets and analyst expectations, but the significant gains compared to the fourth quarter results showed the company is slowly pulling past the “production hell” phase.
Tesla’s statement details how the company produced 9,766 Model 3s in the whole quarter and 2,020 in the final seven days alone. It’s a welcome boost from the 2,425 produced in the fourth quarter, but still far short of the 20,000 per month rate the company expected to hit as soon as December 2017. The company has big plans to continue growing, with a goal of 500,000 cars per year by the end of 2018.
One person likely to be very happy with the stock boost is Elon Musk. Last month, Tesla shareholders approved a $55.8 billion rewards package, which grants Musk stock options and awards if he stays in specified managerial positions until 2028 and completes 12 stages. Musk will receive the full payout if the company’s market cap reaches $650 billion.
The company won’t be able to stand still for long, though: after last summer’s Model 3 launch, attention is turning to the Semi electric truck due to launch in 2019, which will see Tesla enter a new industry with its existing technology.
If the truck proves a success, it could lead to even more successful weeks of Tesla stock.