What’s going on at Tesla?
Now Playing: Tesla stock surges over $1 billion, Tesla shares soar over 3X in afternoon trading article Tesla’s stock surged over 3x on Wednesday after the electric carmaker’s CEO said he is taking a leave of absence due to health issues.
The stock rose as much as 3,200% to close at $3,742.36.
Tesla said CEO Elon Musk was suffering from multiple illnesses and is undergoing treatment at his home in the Palo Alto, California area.
Musk, 73, announced he is leaving Tesla in September after two years as CEO, but said he would stay on for at least three more years.
Tesla shares are up more than 70% over the past year, but the stock has been plagued by a string of recent missteps, including a series of product recalls.
Musk has blamed his health issues on a cocktail of drugs and stress.
In the afternoon, Tesla’s shares rose to a record high.
The company had been trading at $1,066.36 when Musk announced he was leaving.
Shares of Tesla were up nearly 70% during Musk’s announcement.
Tesla’s stock has fallen about 50% over a three-month period.
Tesla shares fell more than 20% over that period.
Tesla was the largest publicly traded electric vehicle company in 2017, but has struggled to keep up with its growing market share in the past two years.
The shares fell 4.5% in 2018.
Tesla has a lot to live up to.
We’re going to be doing the best we can to deliver great product, great service and great experiences to our customers,” Musk said in a statement.
Musk announced that he will remain on for two more years, but Tesla has said that he should leave in 2018 if he is feeling well enough to return to the company.
Tesla is expected to report its third-quarter earnings on Wednesday.