Tesla TSLA Shares Hit All-Time High Again as S&P 500 Inclusion Around the Corner & Half Trillion Market Cap on Tap

Tesla TSLA Shares Hit All-Time High Again as S&P 500 Inclusion Around the Corner & Half Trillion Market Cap on Tap

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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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Eva Fox holds zero shares of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.

About the Author

Eva Fox

Eva Fox

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.

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