Tesla Stock Rises for 11 Consecutive Days... 'Positive News for Electric Vehicle Charging Business'

Market Expectations Rise as Market Cap Surpasses 1,000 Trillion Won

U.S. electric vehicle company Tesla's stock price rose for 11 consecutive days, reflecting positive developments in the electric vehicle charging business. It is expected that Tesla will be able to generate future profits through its market-leading position.

According to the official Nasdaq website on the 9th (local time), Tesla's closing price on that day was $244.40 (approximately 320,000 KRW), up 4.06% from the previous day. It has increased by 98% compared to the beginning of this year. This marks the first time in 2 years and 5 months since January 2021 that Tesla's stock price has risen for 11 consecutive trading days.

Based on the closing price that day, Tesla's market capitalization was approximately $774.6 billion (1,001.9451 trillion KRW). Although it did not reach the $1 trillion market cap achieved in October 2021, considering the exchange rate at that time, it similarly exceeded 1,000 trillion KRW in Korean won.

[Image source=Yonhap News]

The background behind Tesla's stock price increase includes the announcement of an agreement between General Motors (GM) and Tesla on the use of charging stations the previous day. Following Ford's decision on the 25th of last month to use Tesla's charging facilities, the Supercharger, GM also joined, resulting in cooperation with the two major U.S. automakers.

Alex Potter, a researcher at investment bank Piper Sandler, stated in a report on the same day that Tesla is expected to earn $4 billion (approximately 5.174 trillion KRW) from charging stations alone between next year and 2030, and $5.4 billion (approximately 6.9849 trillion KRW) by 2023 due to this charging station agreement. He also suggested that not only Ford and GM but several other car brands could use Tesla's charging facilities in the U.S.

Bloomberg News viewed Tesla's early entry into the electric vehicle charging market as potentially very beneficial for Tesla's profit generation. Other foreign media predicted that Tesla could also receive subsidies from the U.S. government, which plans to provide grants to electric vehicle charging station operators, by meeting the charging station requirements. The U.S. government announced an electric vehicle charging infrastructure expansion policy in November last year, promising a total of $7.5 billion (approximately 9.7012 trillion KRW) in subsidies over the next five years.

Meanwhile, Tesla is reportedly in discussions with local authorities to establish a new electric vehicle factory in Valencia, Spain. Spain is the second-largest automobile producer in Europe after Germany. Tesla previously had a factory only in Germany within the European region.