Tesla's stock rebounded from its recent selloff on Tuesday in a rally of electric vehicle makers a day after Chief Executive Elon Musk disclosed he sold another $930 million worth of his company's shares.
In a sector surge spearheaded by Rivian Automotive Inc and Lucid Group Inc, Tesla Inc rose 4.1% to close at $1,054.73, leaving its market capitalization down about $187 billion since before Musk began selling shares last week.
Rivian's stock jumped 15%, with the EV maker now up over 120% since its initial public offer last Wednesday.
Rivian disclosed in a filing on Tuesday that its underwriters bought 22.95 million additional shares, boosting the total size of the IPO. Including those shares, Rivian's market capitalization rose to $153 billion, overtaking Volkswagen AG by $14 billion and making the Irvine, California, company the world's third-most valuable carmaker.
Lucid surged nearly 24% after it said reservations for its cars rose to 13,000 in the third quarter and that it is confident it will produce 20,000 of its upcoming Lucid Air sedans in 2022.
The gain in Lucid's shares elevated its stock market value to $90 billion, overtaking Ford Motor Co and leaving it $1 billion short of General Motors Co.
Musk sold 934,091 shares after exercising options to buy 2.1 million shares at $6.24 each on Monday, according to a company filing.
Over the past week, Musk has sold about 7.3 million Tesla shares for $7.8 billion. Those sales fulfill almost half of his pledge on Twitter to sell 10% of his stake in Tesla.
Musk began selling shares last week after floating the idea in a Twitter poll.
With electric-car makers increasingly in demand on Wall Street, Tesla's stock has surged more than 150% in the past 12 months.
"There's still plenty of buying interest because I still think ultimately investors are viewing this as a phase and viewing pullbacks as an opportunity," said Craig Erlam, senior market economist at OANDA. "If you ask me where the share price is going to be six months from now, 12 months from now? I'd say it's more likely to be 20% higher than 20% lower."
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