Elon Musk-owned electric vehicle company Tesla has surged 7 percent to rise back to over $1 trillion in market valuation, media reports said.
According to the auto-tech website Electrek, ever since Musk announced that he will sell 10 percent of his stake in Tesla, the company’s stock has been suffering.
Earlier this week, it lost the incredible gains it made following the announcement that Hertz would be buying 100,000 Model 3 vehicles, which pushed Tesla’s stock to over $1 trillion for the first time.
But it has had a reversal. Tesla’s stock surged by 7 percent, which is wild for a company that valuable. The stock has now settled past $1,000 a share, which gives it back a market capitalization of over $1 trillion, the report said on Wednesday.
The recent surge happened on a slow news day, and the main new information that contributed to the price increase appears to be Musk saying that he believes he sold enough shares to satisfy his statement that he would sell 10 percent of his Tesla stocks.
In Tesla’s last filing, the company disclosed that Musk still has 2,637,455 stock options to exercise as part of the plan set in September. However, it sounds like Musk won’t be selling any additional shares other than what was part of his compensation plan, as per the report.