Electric car company Tesla is showing no signs of slowing down. Despite the global pandemic Coronavirus which forced people to stay indoors, the firm’s share prices have been escalating. In addition, its share prices broke all records on Monday.
Jumping by circa 14.6%, share prices surged to $1,770.33. As its evaluation continues to climb, experts expect that it might join the S&P 500 shortly.
During the price escalation this morning, Tesla’s market value shot up to $321b, per FactSet, making it the tenth-largest stock by market value in the US.
The rise in stock prices means that the company’s shares have climbed by almost 650% in a year as the price was £233 at that time. Furthermore, Tesla’s stock has quadrupled in value since March this year. If Tesla’s stock keeps rising, it would mean the company having consecutive profits for the fourth quarter – a key factor should it be added to the S&P 500 index.
— MarketScreener.com (@Market_Screener) July 13, 2020
Tesla proving to be an exception to the Corona-induced slump
As the 17-year-old company goes from strength to strength, its market value now roughly equals the combined values of Toyota, General Motors, Ford Motors, and Fiat Chrysler.
Earlier this month, the firm even revealed that it beat Wall Street’s expectations with respect to delivery numbers overtaking Toyota to become the world’s most valuable car firm. These results were despite US auto sales seeing a decline of about 34% during the quarter due to the Corona crisis.
As a result of the surging stock prices, chief executive Elon Musk became the seventh-richest person in the world, surpassing investor Warren Buffett by almost $1bn. Musk now boasts of a net worth circa $70.5 bn. The Musk-led firm will report its second-quarter results on 22 July.
Looking at Tesla’s strong performance amid the pandemic and soaring stock prices, it won’t be surprised if it joins the index as well as expands to other countries.