Panasonic noted quarterly profits on lithium-ion cell production at the Tesla Gigafactory for the very first time in Q4 2019.
On February 3, 2019 Tesla's stock prices surged about 20% (largest one-day gain since 2013 according to Reuters) to an all-time record of $780, which is also 80% above January 1, 2020 and 300% more than in early June 2019.
We were wondering what caused such a rally for an already quickly gaining stock (see the previous report when the prices were around $500).
It seems that the avalanche was triggered by the Panasonic's Q4 2019 report, which says that its 21700 cylindrical lithium-ion cell production at the Tesla Gigafactory 1 in Nevada was profitable for the very first time.
"Tesla Inc’s stock surged 20% on Monday in its largest one-day gain since 2013, fueled by a quarterly profit at Panasonic’s battery business with the U.S. car maker and an investor report predicting its shares would rise more than ten-fold by 2024."
Two consecutive profitable quarters for Tesla (with record car sales) and profitable battery production for Tesla by Panasonic, surely are strong reasons for the stock to make gains.
By the way, a quick look at the stock prices of known EV battery manufacturers like Panasonic, LG Chem or CATL also shows noticeable gains, by at least a few percent.
The Japanese manufacturer is optimistic about maintaining profits from production at the Gigafactory - something very important after six years since the investment started in 2014:
"“We are catching up as Tesla is quickly expanding production,” Panasonic Chief Financial Officer Hirokazu Umeda told an earnings briefing, referring to battery cell production.
“Higher production volume is helping to push down materials costs and erase losses.”"
One of the investment companies, Ark Invest, recently released an incredible forecast/expectation that Tesla stock will hit $7,000 by 2024. It's extreme, but who knows what tomorrow will bring?