[ad_1]
Crazy things. Tesla’s market value soared above $ 500 billion (or 2.044 trillion yuan) yesterday, the latest peak in a super rally in which shares of the electric vehicle maker rose more than 500% in 2020. As investors bought debut Tesla stock on the S&P 500, the counter jumped nearly 5% yesterday, putting its market cap at $ 519 billion.
According to ReutersThe frenzy began on November 16, when it was announced that Tesla would join the benchmark S&P 500 index. Since then, Tesla shares have risen more than 30%. Maybe it will decline over time, but at current share prices, Elon Musk’s company is by far the most valuable automaker in the world despite making only a fraction of what the traditional greats Toyota, Volkswagen. and GM launch.
The automakers don’t matter: Tesla is currently the seventh most valuable company on Wall Street, right behind Berkshire Hathaway. It could even outperform Warren Buffett’s company in the future, as index funds that track the S&P 500 will have to buy more than $ 50 billion worth of Tesla shares before being listed on December 21.
Additionally, Goldman Sachs has estimated that actively managed mutual funds could buy another $ 8 billion of Tesla shares after they are added to the S&P 500. Tesla has seen five consecutive quarters of earnings after years of losses, so there is at least some correlation between the action. price frenzy and the actual performance of the company.
Tesla’s earnings have propelled Elon Musk to be the second richest man in the world, surpassing Microsoft founder Bill Gates. Musk, whose personal net worth rose from $ 7.2 billion to $ 128 billion with the stock price rise, is now only behind Amazon founder Jeff Bezos.
While Tesla is grabbing all the headlines, shares in other electric vehicle companies have also rebounded in recent months. This is due to US President-elect Joe Biden’s campaign promise to push electric vehicles forward. “One of the fundamental pillars of the Biden platform will be to power zero-emission, clean energy vehicles in hopes of accelerating the deployment of electric vehicles and public charging points by 2030,” Wedbush analyst Daniel Ives wrote in a research note. , reported by Reuters.
Nio, the Chinese answer to Tesla listed on the New York Stock Exchange, has seen its shares rise 72% in November.
[ad_2]
