Tesla surges back to record high ahead of joining the S&P 500

Tech

Elon Musk, head of Tesla, at the Tesla Gigafactory construction site in Grünheide near Berlin, September 3, 2020.

Patrick Pleul | picture alliance | Getty Images

Tesla stock reached an all-time high Thursday, briefly trading at $507.76 per share.

The company’s stock has been on a tear since the S&P Dow Jones Indices announced this week that it will include the carmaker to the benchmark index prior to trading on Monday, Dec. 21. Money managers with funds that track the S&P 500 will need to buy the stock for their portfolios.

Morgan Stanley also upgraded Tesla to a buy-equivalent overweight rating Wednesday, the first time in years since the company put a buy rating on the stock, sending share prices up.

“Tesla is on the verge of a profound model shift from selling cars to generating high margin, recurring software and services revenue,” Morgan Stanley auto analyst Adam Jonas said in a note on Wednesday. The firm upped its price target to $540 from $360.

Tesla recently reported its fifth consecutive quarter of profit on third-quarter revenue of $8.77 billion. The company also reported that it delivered 139,300 vehicles during the third quarter, a new record for it. 

The company’s stock is up more than 490% year to date.

CNBC’s Michael Bloom contributed to this report.

Subscribe to CNBC on YouTube.

Products You May Like

Articles You May Like

REAL TIME – Corona Virus Statistical Data (Worldwide)
Rocket Lab launches Electron in test of booster recovery
In a concession to WarnerMedia, Amazon will remove HBO from Amazon Channels next year
The Invasive Species Argentine Tegu Spreads to Florida and the US Southeast
An International Agreement to Collaborate on Artemis on This Week @NASA – October 30, 2020
Will shifting to smaller turkeys help combat food waste?

Leave a Reply

Your email address will not be published. Required fields are marked *