Tesla On Verge Of Joining S&P 500“”And The Stock Could Skyrocket Further
- Date: 11-Jul-2020
- Source: Forbes
- Sector:Financial Markets
- Country:Middle East
Tesla On Verge Of Joining S&P 500“”And The Stock Could Skyrocket Further
With Tesla announcing higher-than-expected second quarter vehicle deliveries last week, Wall Street analysts are increasingly confident that the company will post a profit when it reports earnings on July 22.
If Tesla is able to clear that milestone, it will mark four consecutive quarters of profits“”a first for the carmaker and a key requirement for a company looking to get added to the S&P 500, Reuters first reported on Thursday.
If the electric car maker does get added to the index, not only will it be a huge accomplishment for billionaire CEO Elon Musk, it could also mean a big pay day for investors betting on Tesla's success.
Tesla recently became the most valuable car company in the world and now sports a market capitalization of about $250 billion: That would make it one of the most valuable companies ever added to the S&P 500, larger than 95% of companies already on the list.
The news follows a standout year for the company so far, with shares surging more than 230% in 2020, despite widespread economic fallout from the coronavirus pandemic.
Tesla's stock, now above $1,400 per share, has been gaining serious momentum since mid-2019, rising over 580% in the last twelve months.
But as it