Tesla's market cap breaches $500 billion as mammoth 2020 rally charges on
- Tesla's market cap rallied above $500 billion for the first time on Tuesday as investors continued to scoop up the highly valued shares.
- The automaker's stock gained as much as 5.1%, to $548.53 per share, in Tuesday trading.
- Bullish analyst forecasts and the company's upcoming inclusion in the S&P 500 fueled its latest leg up. Tesla shares now sit more than 550% higher year-to-date.
- The rally has minted a fortune for Elon Musk. The CEO's net worth skyrocketed more than $100 billion in 2020 alone, and Musk overtook Bill Gates as the world's second-richest person on Monday.
- Watch Tesla trade live here.
Tesla's seemingly endless rally hit a new milestone on Tuesday: the electric car maker is now worth more than $500 billion.
The company gained as much as 5.1%, to $548.53 per share, as investors' buying spree continued through the week. Shares have surged more than 550% year-to-date as fears over supply shortages fade and Wall Street turns bullish on the future of electric cars.
The rally's most recent driver emerged on Monday when Wedbush analyst Dan Ives lifted his bull-case price target for Tesla to $1,000. The company's "sustained path to profitability" shifts focus to an acceleration in EV demand, Ives said. Wedbush expects global demand to more than triple to 10% by 2025 and "disproportionately benefit the clear EV category leader."
Investors also piled into Tesla shares after S&P Dow Jones Indices announced last week that the automaker will join the S&P 500 in December. If Tesla's market cap holds, it's is set to be one of the index's ten most valuable members. The stock jumped as much as 13% on the news.
The massive rally has generated a fortune for Elon Musk. The CEO overtook Bill Gates as the world's second-richest person on Monday after rising Tesla shares lifted Musk's net worth to roughly $128 billion. Musk's net worth has exploded by more than $100 billion in 2020 alone thanks to Tesla's surging stock price.
Some on Wall Street expect prices to rise further still before the year is out. Of the 189 large-cap funds tracked by Goldman Sachs, 157 that manage roughly $500 billion didn't hold any Tesla shares as of September 30, the bank's analysts said Thursday. Those funds are set to buy $8 billion worth of shares once Tesla joins the index, according to Goldman.
Tesla's leap through 2020 is also boosting younger EV companies. Nio, Nikola, and Lordstown Motors all trade near record highs as investors look to further capitalize on the sector's rapid growth.
Tesla traded at $541.82 per share as of 11:55 a.m. ET Tuesday. The company has 22 "buy" ratings, 42 "hold" ratings, and 19 "sell" ratings from analysts.
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