Elon Musk’s company has caused an abundance of debates in 2020. Everyone, from small investors to hedge-fund CEOs, struggled to tell what will happen with the company’s stock price literarily the next day. Producing a little more than half a million cars a year, the company costs more than General Motors, Ford, Honda, Toyota, Volkswagen, etc. combined. In 2020 the price of the company’s stocks has gone skyrocket growing by 800%, giving its trusting investors a good New Year’s present.
2020 was very pleasing for the company. The managers have been able to accomplish the goals set for the year; the number of cars produced and sold rose drastically compared to 2019; the revenue of the company grew by 28%, which is approximately 7 billion dollars more than last year.
This extraordinary stock price could be explained by the hype around the company and Elon Musk, many of whose projects showed mind-blowing results lately. Long-term investors believed in the company due to its innovations and governmental policies, which support eco-friendly products. Short-term investors bought the shares to follow the trend and earn fast and easy money. Also, the company is highly admired by ecologists and environmental activists, who are concerned about the rising rates of pollution. Still, many analytics suspect that it is a bubble and warn people about possible risks.
To sum up, 2020 was a great year for the leading producer of electro-cars in the world. It was taken into S&P 500 and achieved many of its goals, making Elon Musk one of the richest people in the world and later (January 2021) the richest person on Earth.
