The rapid growth of TSLA shares has led to an increase in the Tesla value that currently makes up $382.04 billion. Now both analysts and investors believe the best days for Tesla are still ahead.
At the end of the last week, Tesla Inc (NASDAQ: TSLA) stock skyrocketed again to reach a new record high. It surpassed $2,000 mark on Tuesday, closing 6.6% up, at $2,001.83. On Friday, Tesla stock went on skyrocketing and ended the session even higher, at $2,049.98.
After hours, TSLA shares slightly declined by 0.36% to $2,042.50. But in the early trading today, they have rebounded and are trading at $2,128.46 (+3.83%) at the moment of writing.
Tesla Stock Rally That Brought a New Record
At the beginning of 2020, the coronavirus pandemic has seriously undermined the activity of most companies. In March, their stocks lowered to touch the bottom levels. Tesla stock suffered as well. However, it managed to recover and now it seems like even in the face of the global crisis, it is arguably one of Wall Street’s most expensive and impressive brands this year.
More than 300% growth of Tesla stock this year has resulted not only from a great carmaker’s performance but also from investors’ expectations. In particular, all are waiting for Tesla to be included in the S&P 500 index, and the strong Q2 2020 Tesla earnings report proves the company is well-deserved to be there.
Just over the last 13 days, since August 10 when Tesla announced a five-for-one split, Tesla stock gained 45%. On August 21, shareholders received a dividend of four additional shares of common stock for each then-held share. On August 28, after markets close, they will be distributed. Trading will begin on a stock split-adjusted basis on August 31.
The record performance of Tesla stock is synonymous with the success of Elon Musk. Recently, he became the fourth richest man in the world. He came ranking fourth behind Facebook’s (NASDAQ: FB) Mark Zuckerberg ($99 billion), Microsoft’s (NASDAQ: MSFT) Bill Gates ($121 billion), and Amazon’s (NASDAQ: AMZN) Jeff Bezos ($188 billion).
Tesla Outperforming Peers
The rapid growth of Tesla shares has led to an increase in the Tesla value that currently makes up $382.04 billion. Such a market cap surpasses that of not only its core market competitors like Ford Motor Company (NYSE: F) and General Motors Company (NYSE: GM) but also oil giants like Royal Dutch Shell Plc (NYSE: RDS.A), ExxonMobil Corporation (NYSE: XOM), and BP Plc (NYSE: BP) combined.
For the first decade of the 21st century, oil stocks were the most stable and safe ones. Strong oil demand and limited supply allowed oil shares to dominate the list of the most valuable companies by market capitalization. They really made people rich. But now, the world is different, and tech stocks are catching the eyes of investors as up-and-coming stocks. It refers not only to giant companies like Apple Inc (NASDAQ: AAPL) or Microsoft Corporation (NASDAQ: MSFT) but also to startups that keep up with the times and offer innovative products and services that have the call.
Now both analysts and investors believe the best days for Tesla are still ahead. Therefore, investors are willing to pay a big premium for Tesla stock, betting that Tesla will continue to grow revenue and earnings for years to come. Although the electric vehicle producer doesn’t make a lot of money right now, the widespread conviction that it will be extremely profitable later on makes investors keep buying Tesla stock.
Daria is an economic student interested in the development of modern technologies. She is eager to know as much as possible about cryptos as she believes they can change our view on finance and the world in general.
