Three Best Reasons Unveiled Why Tesla Stock Skyrocket

Over the past six months, Tesla shares have slowly increased by nearly 25 percent. Now, over the past three months, their stock is way up at 55 percent.

Tesla Stock Is Going Off The Roof

It has been reported that Tesla had hit an unexpected profit during the third quarter of 2016. But as of right now, 2017 unveiling itself to be a very demanding year for the electric car-making company. Tesla will have to invest a lot of money to launch its first mass-market vehicle, the Model 3, as well as integrating its $2.1 billion acquisition of SolarCity.

2017 Is A Demanding Year For Tesla

According to AutoWorldNews, Tesla has just missed their mark of 100,000 cars produced, despite having a record number of vehicles being delivered in 2016. This can potentially pose a financial threat, as Tesla has a fluctuating history of surges and collapses with regards to its stock price.

It seems that Elon Musk will have to execute yet another capital raise in 2017 as the company prepares to launch the Model 3, which is definitely going to be a costly undertaking. Tesla has experienced several spikes to its big share-price, but the stock has always reverted itself, which is usually caused by some negative news event or a weak financial result.

Tesla Growing And Becoming More Complicated

There's no doubt that Tesla builds expensive stuff, and right now, it has made its business more complicated by absorbing SolarCity, adding yet another billion in debt to its balance sheet. According to ValueWalk, Tesla shares have indeed risen in line with anticipation of a successful Tesla Model 3 launch.

Analysts are also reporting that the company does not possess enough capital to be able to complete its Tesla Model 3 production ramp on time or even fund the growth of its other projects, such as transforming its SolarCity division into a profitable line of products.

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