Tesla Stock Hits Intraday High for First Time in 7 Months... Soars 87% Year-to-Date

Expansion of Business in China and IRA Subsidy Benefits
Musk's Net Worth Reaches $205 Billion, Ranking First Worldwide

Tesla's stock price hit its highest intraday level in about seven months. This is analyzed to be due to easing concerns about an economic recession and investors flocking to tech and growth stocks. As Tesla's stock price surged, the wealth of Elon Musk, Tesla's CEO and the world's richest person, increased to $205 billion (approximately 268 trillion KRW), surpassing Bernard Arnault, chairman of LVMH (Louis Vuitton Mo?t Hennessy), by $18 billion (approximately 23.5 trillion KRW).

[Image source=Yonhap News]

On the 7th (local time) at the New York Stock Exchange in the United States, Tesla's stock price rose to $230.83 at one point during the trading session. This is the highest level since November 1 of last year.

Tesla's stock price surged 26.1% over nine consecutive trading days starting from the 25th of last month, marking the longest consecutive rise since January 2021 (11 consecutive days). Although the stock price fell 65% last year, it has soared 87% this year.

Ivana Delevska, Chief Investment Officer (CIO) of SphereInvest, analyzed, "The investment movement in Tesla is somewhat justified as it is emerging from a recession comparable to the dot-com bubble," adding, "Many tech stocks still have room to rise depending on how much damage they have suffered so far."

Tesla's stock price had declined for a while due to profit reduction concerns after CEO Musk announced in April that he would maintain the price reduction policy. However, following Musk's visit to China last week and the recent change in battery components allowing the 'Model 3' to qualify for a $7,500 (approximately 9.8 million KRW) subsidy under the Inflation Reduction Act (IRA), the stock price has surged.

Wedbush analyst Dan Ives explained, "(Musk) playing in the Beijing playground means he is focusing on expanding the China business and ensuring that the country remains the world's number one electric vehicle market for the coming years without disruption."

Musk's appointment of Linda Yaccarino, former NBCUniversal advertising chief, as Twitter CEO last October also eased concerns about Tesla's owner risk.

However, there is considerable caution regarding investors buying Tesla stock riding the artificial intelligence (AI) investment boom.

Delevska CIO warned, "I want to caution those investing in Tesla because of AI," stating, "General-purpose AI will undermine Tesla's advantage in the autonomous driving field."

Meanwhile, buoyed by Tesla's stock price rise, CEO Musk reclaimed the world's richest person title from Chairman Arnault on the 31st of last month. According to the Bloomberg Billionaires Index on that day, Musk's net worth was $205 billion, increasing by $2.65 billion (approximately 3.461 trillion KRW) in one day. Arnault's net worth was estimated at $187 billion (approximately 244 trillion KRW).