Tesla (TSLA) Stock up 90% Year-to-Date While Mainstream Auto Stocks Sink

Michael LaVere
  • Tesla (TSLA) stock is up 90 percent year-to-date while other mainstream auto manufacturers continue to struggle.
  • Tesla's Chinese business posted its best-ever month in March after delivering 10,160 vehicles. 

Tesla (NASDAQ; TSLA) stock is up more than 90% year-to-date (YTD) while mainstream auto companies are down 40% as investors bet on the electric vehicle maker during the crisis.

According to a report by Forbes, TSLA stock has continued to rise throughout 2020 and the coronavirus pandemic, despite mainstream auto manufacturers seeing their share prices crash. 

Data shows that at the beginning of the year, TSLA stock was trading at about $430, but a rather large uptrend saw its price grow to a new high of $917 before the coronavirus-induced market crash saw it drop significantly. Since then, Tesla's stock has recovered to now trade at $800.

TSLA price chart YTDSource: Google

The ongoing lockdown and economic impact has decreased the demand for new vehicles and reduced the number of drivers. General Motors (GM) shares are down 38% YTD, while Ford (F) has fallen 43% since the start of 2020. 

The report claims the coronavirus has disrupted mainstream automakers’ attempt to pivot to electric vehicles, solidifying Tesla’s market dominance over EVs. Tesla has also benefited from the aggressive stimulus policies of the US government. 

It reads, 

The S&P 500 has rallied by close to 30% from its March lows, driven by the U.S. government’s aggressive stimulus, and it’s likely that Tesla will be a key beneficiary if the economy improves, given its strong line-up of vehicles including the Model 3 and Model Y compact SUV.

Tesla’s Chinese business, driven by production at its Shanghai factory, has fared well through the pandemic. In March, the company recorded its best ever-month in China after delivering 10,160 vehicles, despite auto sales in the country plummeting 43% year-over-year. 

Analysts, as CryptoGlobe reported, have eyed a $2,000 price target for TSLA stock, betting on the company's growth in China and on its dominance in the EV market being maintained as consumers start focusing more on electric vehicles.

Featured Image Credit: Photo via Pixabay.com

Coinbase Preparing for Stock Market Listing as Early as This Year: Report

San Francisco-based cryptocurrency exchange Coinbase has reportedly started preparing for a stock market listing that could come as early as this year.

The move would make Coinbase the first major U.S.-based cryptocurrency exchange to go public, but the listing would require the U.S. Securities and Exchange Commission’s (SEC) blessing. According to Reuters, one source claimed the exchange is considering a direct listing instead of a traditional initial public offering (IPO).

While in an IPO new shares are created, underwritten and sold to the public, in a direct listing no new shares and created and only outstanding shares are sold, with no underwriters involved. Reuters quoted three people familiar with the matter, who requested anonymity because the listing preparations are reportedly confidential.

Coinbase has not yet registered its intention to go publish with the SEC, but has already reached out to investment banks and law firms. The cryptocurrency exchange was valued at $8 billion in its latest private fundraising round in 2018.

It was founded in 2012 and now has over 35 million users, allowing them to trade various cryptoassets both on its Coinbase platform and on the Coinbase Pro platform. It also has multiple other services, including Custody, Commerce, and Earn.

The San Francisco-based firm’s bitcoin holdings are estimated to now be over 1 million BTC, as users deposit funds on it over time. Last month Coinbase revealed it suffered outages after seeing its traffic spike significantly in a few minutes, as the price of most cryptocurrencies moved abruptly.

As CryptoGlobe reported, CryptoCompare’s June 2020 Exchange Review showed Coinbase was the third-largest top tier crypto exchange by trading volume in May, trading $6.86 billion worth of crypto throughout the month, falling behind OKEx and Binance.

Featured image via Unsplash.