Feb 5, 2020 - Economy & Business

Tesla stock continues meteoric rise while Exxon's at a decade-low

Data: Money.net; Chart: Naema Ahmed/Axios

Two of the most important companies on the energy beat are having very different weeks.

The big picture: Tesla's shares went bananas again Tuesday, spending much of the day well above $900 before falling at the trading close and continuing its fall early Wednesday. Meanwhile, Exxon's stock has been on a downward trajectory all year that picked up speed with Friday's disappointing earnings report — eventually reaching a decade-low.

  • Tesla's market valuation is now $160 billion, despite being barely profitable.
  • While the volatile electric automaker has emerged from near crises in recent years and turned a profit the last two quarters, it's hard to say why its stock has basically doubled in price in 2020 and shot up so fast the last few days.
  • "No amount of product announcements, analyst upgrades or bullish investor predictions can satisfactorily explain this sort of meteoric rise. Nor the plummet into market close," Axios' Dan Primack wrote yesterday.

The other side: One reason why Exxon's declines continued this week, per multiple reports, seems to be a gloomy Goldman Sachs assessment.

  • It "downgraded the stock to a sell rating Monday, saying 'more compelling returns opportunities exist both among the global majors and global large cap stocks outside of energy,'" CNBC reports.

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Tesla gains another $19 billion in market value

Data: Money.net; Chart: Axios Visuals

Tesla is in the midst of what might be the most lucrative one-week run in stock market history, on Tuesday gaining another $19.3 billion in market value. Since the close of trading last Tuesday, it's up 50% to an eye-popping $53.6 billion.

But, but, but: Tesla also fell around $80 per share in the last five minutes of trading.

Tesla shares plummet after wild few days of trading

Source: FactSet; Chart: Axios Visuals

Shares of Tesla closed down more than 17% on Wednesday, shredding more than $27 billion in market cap value.

Between the lines: Wednesday ended a streak of eye-popping stock gains for Tesla. Per CNBC, it was the second-worst day for the stock ever.

The vindication of Elon Musk

Photo Illustration: Sarah Grillo/Axios. Photo: Jörg Carstensen/picture alliance via Getty Images

Tesla stock has been in Ludicrous Mode for the past few days. Given its bonkers gyrations, it's now easy to see why CEO Elon Musk might feel that he was right all along in wanting to take the company private back in 2018.