Tags: tesla | stock | shares | market value | 500 billion

Tesla Hits $500 Billion Mark After Soaring 547 Percent This Year

Tesla Hits $500 Billion Mark After Soaring 547 Percent This Year
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Tuesday, 24 November 2020 02:13 PM

Tesla Inc. blew past $500 billion in market value on Tuesday as investors snapped up its shares in the run-up to its debut in the S&P 500, extending a meteoric rally that has seen it surge over 500% this year.

The California electric carmaker's stock (TSLA) rose nearly 5%, putting its market capitalization at $519 billion.

Shares of the electric vehicle company have soared this year, rising nearly 550%, with gains accelerating over the past week after S&P Dow Jones Indices last Monday said Tesla will be added to the benchmark. The stock surge helped co-founder Elon Musk add $100.3 billion to his net worth this year and overtake Bill Gates to become the world’s second-richest person.

Tesla is Wall Street's seventh most valuable company, just behind Berkshire Hathaway, and its shares have rallied over 30% since Nov. 16, when it was announced Tesla would join the S&P 500 benchmark.

Index funds that replicate the S&P 500 will have to buy more than $50 billion worth of Tesla's stock ahead of its inclusion to the index on Dec. 21. Additionally, Goldman Sachs estimated last week that actively managed mutual funds could buy another $8 billion of Tesla shares after it is added.

Tesla has become by far the world's most valuable automaker, despite production that is a fraction of Toyota Motor Corp., Volkswagen or General Motors Co.

Shares of other electric vehicle (EV) makers have also rallied in recent months as President-elect Joe Biden made boosting EVs a top priority during his campaign.

Chinese electric carmaker Nio Inc fell 4.9% on Tuesday, trimming its gain in November to 72%.

"One of the core underpinnings of the Biden platform will be around pushing clean energy and zero-emissions vehicles with hopes of accelerating the deployment of electric vehicles and public charging outlets by 2030," Wedbush analyst Daniel Ives wrote in a research note.

Meanwhile, Musk said Tesla is looking at expanding in Europe by entering the mass-market segment with a compact car.

"Possibly in Europe it would make sense to do, I guess, a compact car, perhaps a hatchback or something like that," Musk told an European online conference on batteries hosted by the German government.

"In the U.S., the cars tend to be bigger for personal taste reasons," he said. "In Europe, (they) tend to be smaller."

Musk said he had had some problems parking his five-meter long Tesla Model X car in German capital Berlin.

"I was driving a Model X around Berlin and we had quite a bit of trouble finding a parking space where we could fit," he said.

The California-based automaker currently sells 4 car models including its mid-sized Model 3 sedan and medium-sized Model Y sport-utility vehicle.

All its vehicles are several tens of centimeters longer than Volkswagen's Golf car, the European reference in compact sedans.

On a global level, Tesla is also due to market its new "Cybertruck" pickup within two years. 

© 2021 Thomson/Reuters. All rights reserved.


   
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Tesla Inc. crossed $500 billion in market value on Tuesday as investors lapped up its shares in the run-up to its addition to the S&P 500 index, extending a meteoric rally that has seen the stock gain more than six times this year.
tesla, stock, shares, market value, 500 billion
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2020-13-24
Tuesday, 24 November 2020 02:13 PM
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