Tesla Motors Inc shares closed at $35.68 on Wednesday after a record-breaking rally on Wednesday, as the electric car maker raised the price of its most powerful car to a record $35,000.
Tesla shares closed up more than 10% to $3538.60.
The rally comes amid concerns about an emerging supply shortage and an increase in production at Tesla’s Fremont, California, plant.
The company had previously said it planned to increase its production capacity by 300,000 vehicles per month.
Tesla said Wednesday’s increase in price was driven by increased demand for Model S, which it said would cost more than $50,000 per vehicle.
Tesla expects to deliver 10 million Model S cars by the end of the year.
The price of Tesla’s shares have risen by more than 5% in the past 24 hours as investors have poured into the stock, driven by anticipation that the automaker will release a Model X crossover sedan.
Tesla’s stock also soared on Wednesday following news of a new agreement between Tesla and Chinese supplier Huawei, and its stock price jumped 8% in a matter of hours.
Tesla reported a $1.6 billion loss in the third quarter of 2016, a loss that beat Wall Street’s expectations.
In 2017, Tesla’s profit dropped 7% as the automakestanding the loss for the fourth quarter was $1 billion, the company said.
Tesla, which reported record-setting quarterly sales of 1.5 million Model X cars, has faced criticism from consumer advocates for slowing production of its electric vehicles and its refusal to allow consumers to buy them.
The automaker is facing stiff competition from Chinese carmaker BYD Corp, which has a large presence in the U.S. and in Europe, and Nissan Motor Co, which makes a smaller SUV and sedan.
In a statement, Tesla said it expects the company to make “significant investments” in its Gigafactory, where it is investing more than 2.4 million square feet of space to produce lithium-ion batteries for its electric cars.
Tesla has said it plans to expand its gigafactory production to 50 million square yards by the year’s end.