(Bloomberg) — Tesla Inc. shares are back in vogue.
The electric vehicle maker’s stock is up nearly 12% in three sessions, leaving them poised to erase the losses that piled up this year as investors moved out of growth stocks and sentiment shifted against the company.
The latest surge reversed nearly two months of lackluster trading, when investors soured on the company amid growing competition threats from traditional automakers, signs of a potential sales slowdown in China and an ongoing semiconductor shortage.
Those concerns may have taken a backseat this week as optimism about surging growth buoyed the broader market and President Joe Biden reached a deal with a group of Republican and Democratic senators on a $559 billion infrastructure plan. That package proposes investing heavily into developing the electric vehicle ecosystem in the U.S., promising to bolster Tesla and its competitors.
Tesla shares rose as much as 6.3% to $697.62 on Thursday. The shares ended 2020 at $705.67.
Some of the strength in the stock on Thursday could also be attributed to a tweet from Chief Executive Officer Elon Musk, who said he will try to do his best to give long-term Tesla shareholders preference in any future IPO of the Starlink unit of SpaceX.
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