Tesla’s (TSLA) stock performance has been mixed this month. As of January 14, the US electric carmaker’s stock had risen 0.5% this month, while the S&P 500 (SPY) and the NASDAQ Composite (QQQ) had risen 3.0% and 4.1%, respectively. Meanwhile, auto industry peers (IYK) General Motors (GM), Ford (F), and NIO (NIO) had risen 12.6%, 17.5%, and 6.8%, respectively. TSLA seems to be outperforming its peers and the broader market today.
What’s behind the optimism?
According to CNBC, ARK Invest founder and CEO Catherine Wood praised Tesla for its strong presence in transportation, saying that the industry is “going to shift wholesale to electric, and Tesla is ahead of the pack.” Wood was optimistic about Tesla’s future, stating that it has a cost advantage over its peers. These positive comments, along with broader markets’ positive bias, could be why Tesla stock is soaring today.
Since its beginning, TSLA has focused on growing the ecosystem for electric vehicles along with producing cars, unlike most of its peers. Tesla’s Gigafactory investment and consistently growing supercharger network could keep it ahead of its competition in the long term.