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The price of Tesla shares (TSLA) continues to rise and on Monday reached a new record high, raising the automaker's value by more than $325 billion, as investors see the stock is going to be included in the S & P 500.
Source: Top 25 Automakers
Tesla will be eligible for inclusion in the benchmark after posting four consecutive quarters of profitability. Many investors expect this when the second-quarter earnings will be published after the market closes on July 22.
Tesla made a lot of efforts in order to achieve profitability in 2Q. According to the company's report, Tesla delivered 90,650 units, which surpassed Street's forecasts even amid a six-week shutdown of Freemont's California manufacturing facility.
Tesla (TSLA) Announces Date For Q2 2020 Earnings Call https://t.co/XbiJDwXVim— Tesmanian.com (@Tesmanian_com) July 9, 2020
If Tesla does crush its Q2 2020 financial results, it could mean inclusion in the S&P 500, leaving the shorts with little to no choice but to declare defeat. In May, Loup Ventures' Gene Munster forecasted that Tesla had a 60% chance of being included in the S&P 500. TSLA's stock price and market cap continue to rise above companies in the S&P 500 index, slowly turning Munster's prediction into a reality with each passing day.
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