Tesla Stock Soars Over $ 2,000 Ahead of Split

Shares in Tesla (NASDAQ: TSLA) jumped more than 6 percent on Thursday above $ 2,000 and were up 2% in pre-market trading on Friday, before the deadline for Tesla stock holders to qualify for more shares get a split-for-one split announced earlier this month.

Tesla’s stock continued to rise on Friday afternoon, with 1PM EDT growing by almost 4%.

“Each shareholder of record on August 21, 2020 will receive a dividend of four additional shares of common stock for each then held stock, which will be distributed to close trading on August 28, 2020,” Tesla said last week, sending the stock rally on ‘ and NASDAQ.

Even before the announced share split, Tesla’s shares had rallied in the spring and summer, to the point that Elon Musk mocked the short sellers and shook the SEC at the beginning of the day.

Later in July, Tesla reported a surprising net profit for the second quarter, beating analysts’ expectations and reporting its fourth consecutive quarter of net profits, despite factory outages due to the pandemic. Four profitable quarters in a row now make Tesla eligible for inclusion in the S&P 500 index.

The sales and earnings figures, the uptake in the S&P 500, the stock split, and the overall rise in EV makers’ shares in recent months have pushed this Tesla share price to new record highs this week.

Tesla’s inclusion in the S&P 500 could launch a new wave of Tesla stock buying from fund managers following the index and from passive investors, according to Credit Suisse, as conducted by The Street.

Year to date, Tesla’s shares have risen by 378 percent, while Tesla’s share is now 847 percent more expensive compared to the same time last year.

Tesla’s market capitalization of $ 373 billion as of close on Thursday exceeded Walmart’s $ 369.8 billion market cap.

The short sales of Tesla also seem to be starting to pick up again. The number of short Tesla shares has dropped by 2.07 million, or 16.3 percent, in the past 30 days, with short shorts to $ 24.7 billion in 2020 mark-to-market loss, Ihor Dusaniwsky , managing director of data of financial analytical firm S3 Partners, tweeted on Thursday.

By Charles Kennedy for Oilprice.com

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