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Supported by positive news and growing demand for Tesla cars, the company's shares (NASDAQ: TSLA) continue to rise in price on Monday, reaching a new all-time high of $525.15 per share.
Tesla's current rally began after being added to the U.S. index S&P 500. With five profitable quarters, Tesla already met the requirements for inclusion into the S&P 500 after the Q3 2020 earnings report, which requires that a company's last four quarters in summation are profitable and that the previous quarter is profitable. Tesla will be added to the S&P 500 effective prior to the open of trading on December 21.
Today, Wedbush analyst Daniel Ives raised his Tesla price target to $560 from $500 and increased the bull case target to $1,000 from $500, indicating that "with the sustained path to profitability and S&P 500 index inclusion achieved, the Tesla bull story is now all about a stepped up EV demand trajectory into 2021."
Additionally, due to the increase in the number of COVID-19 cases, Governor Gavin Newsom ordered a curfew for certain counties in California. But the California Department of Public Health recognized Tesla employees as “essential workers” and exempted the company from new COVID-19 health orders. This, in turn, will help Tesla continue to produce vehicles without hindrance in an effort to reach its 2020 target for the delivery of 500,000 vehicles.
Reaching a new stock price high pushed the California-based company even closer to reaching a market capitalization of half a trillion dollars. At the time of this writing, the company's stock was trading at $517.78, giving Tesla a market cap of $490.8 billion.
© 2020, Eva Fox. All rights reserved.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.