2020-7-11 11:15 |
Coinspeaker
Tesla (TSLA) Stock Surges Another 10% to End Week at Record Level of $1544
The stock market rally for the electric-automobile giant Tesla Inc (NASDAQ: TSLA) looks unprecedented, especially during the COVID-19 economic slowdown. On Friday, June 10, Tesla stock ended 10.78% higher closing above a record of $1,544.65.
Earlier in July, Tesla overtook Toyota Motor Company (NYSE: TM) become the most valued automobile company globally. Now, Tesla is very much close to realizing its next milestone of $300 billion. What is more spectacular about Tesla is that this growth amidst times of major economic meltdown. With governments imposing lockdown due to the COVID-19 crisis, businesses have suffered massive losses, especially the automobile industry.
Tesla’s latest market rally comes after the company reported its Q2 2020 deliveries beating street estimates. Against the analysts’ estimate of 72,000 vehicle deliveries, Tesla reported an actual 30% more deliveries of 96,500. Tesla is all set to release its quarterly results on July 22.
As per the analysts’ estimate, Tesla can report a GAAP quarterly loss of $1.34 per share with sales of $4.8 billion. Well, it would be interesting to see if Tesla can manage to beat this. If it does and reports a fourth consecutive GAAP profit, it would be ready to enter the S&P 500 index.
Tesla Stock Entry to the S&P 500 and New Record LevelsOn Friday, July 10, a Reuters report suggested that Tesla is all poised to enter the S&P 500 index (INDEXSP: .INX). This would also mean a massive accomplishment for Elon Musk and the company as it emerges as the world’s largest automobile by market cap.
Moreover, with a market cap of $286 billion, it will make Tesla as one of the most valuable companies to enter the S&P 500 index. In fact, it will be larger than 95% of the index’s existing components. The index inclusion means more trading volumes for the Tesla stock.
So let’s see how some of the market analysts are looking at it at this moment. Tim Ghriskey, chief investment strategist at Inverness Counsel in New York, said:
“You have all the index funds that have no choice but to include it. That is one reason why it has been so strong here, in anticipation of that.”
Jim Bianco, head of Bianco Research in Chicago, noted:
“Even if you don’t like Tesla and you think it’s overvalued, the fact that it is going into the index would mean trillions of dollars would have some kind of position. As part of their benchmark, portfolio managers would not be able to ignore it.”
The Tesla stock (NASDAQ: TSLA) remains as the top performer on Wall Street beating all market sentiment, especially in the automobile industry. Over the last year, Tesla stock has appreciated 500% as on Friday closing.
Tesla (TSLA) Stock Surges Another 10% to End Week at Record Level of $1544
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