Tesla Shares Jumped more than $1,000 as Musk ramps up Semi

Tesla (TSLA)  seemed to have had an eventful week, following its heated competition with Nikola and its leaked email, discovered by Reuters. The content of the email revealed Musk’s intention to ramp up mass production and delivery of the Semi trucks. When asked by a twitter user if the claims were true, Musk responded with a ‘Yes’ on Twitter. 

Tesla’s stock since surged above $1,000 a share on Wednesday. Tesla’s nearly 6% stock surge not only lead to an increase in the company’s stock value but has since become the second-most valuable carmaker in the world, next to Toyota. Tesla’s surge could put Musk in the position of receiving another payout from a stock compensation plan linked to the company’s market capitalization.

Many investors see Tesla’s stock as a ‘bullish play’, which gave it a boost and lifted its price target to $1,000 based on huge demand.  Although there are still missing details about the Semi battery technology, and investors wait in anticipation of the unveiling of the “million-mile” battery technology. The battery is said to deliver longer life, lower costs, and better range for Tesla’s vehicles in the future.

Musk said the battery and powertrain production will take place at Giga Nevada, without stating where the rest of the work will be done. Although he hinted Texas and Oklahoma as possible sites to build a new factory.

In November 2017, Musk unveiled the prototype for the Semi, a futuristic battery-powered truck. The truck comes in two varieties, with the Class 8 launching in 2019. However, the turn in events due to the coronavirus pandemic pushed plans for volume production to 2021. Following the tight competition with Nikola, Musk has changed production plans for as soon as possible.