Shares of Tesla surged to a seven-month high on Wednesday, marking a sharp recovery from last year's slump.
The surge has pushed CEO Elon Musk's wealth to even higher levels, cementing his position as the richest individual in the world.
During early trading in the New York session, Tesla shares rose more than 3% to reach $229, boosted in part by positive news from the United States federal government.
All sedan versions of the Model 3 are now eligible for the full federal EV tax credit of $7,500 where previously it was only given half of that amount.
At the close of trading, Tesla shares traded at $224.57, giving the electric vehicle (EV) maker a market value of $711.78 billion.
Since hitting its lows in early January, the company's stock has seen a remarkable increase of over 107%, making it one of the best performers in the S&P 500.
As context, the S&P 500 has jumped by 12% year to date.
However, Tesla shares are still trading about 44% lower than their peak of $410 in November 2021, as reported by Forbes.
