Tesla shares soar past $1,000 after Musk seizes on Nikola hype

By: Gabrielle Coppola | Jun 10 2020 at 11:37 AM | Intermodal

Elon Musk wasn’t about to let a revenue-less manufacturer of zero-emission semi trucks steal the spotlight from Tesla Inc.

The chief executive officer sent an email to employees before the market opened Wednesday declaring that it is “time to go all out” and put Tesla’s Semi into volume production. Musk didn’t give a time frame for when he expects mass output to actually happen. Just six weeks ago, Tesla said that initial deliveries would be postponed to 2021, roughly two years later than initially planned.

If Musk was looking to regain the attention of any investors whose eyes had wandered toward Nikola Corp., the market got the memo. Tesla’s stock surged past $1,000 for the first time, while shares of newly listed Nikola sold off following days of hype about its plans to bring battery-electric and fuel cell-powered haulers to market in the coming years.

“Given some of the other news flow in the past month to two months on the Class 8 truck market, I think he’s probably trying to keep Tesla in the marketing cycle just for all the mega trends going on in trucking,” Jeff Osborne, a Cowen & Co. analyst, said of Musk. He rates Tesla the equivalent of a sell.

Tesla soared as much as 7.6% to $1,011.65, lifting its market capitalization to an intraday peak of almost $188 billion. It’s gaining ground on Toyota Motor Corp., the world’s most valuable auto company at $215.9 billion.

Nikola shares fell as much as 17% on Wednesday after advancing 122% the prior two days. It’s planning to start delivering a battery-electric semi next year, followed by fuel cell-electric big rigs in 2023.

Trevor Milton, Nikola’s 38-year-old founder, took Musk’s memo in stride.

Reuters reported Musk’s email to Tesla employees earlier Wednesday. The CEO confirmed the authenticity of the memo to his more than 35 million Twitter followers.