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

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.

News

Articles You May Like

WhatsApp Reportedly Begins Rolling Out Ability to Pin Multiple Channels to Beta Testers
Arid Viper Launches Mobile Espionage Campaign with AridSpy Malware
North Korean Hackers Target Brazilian Fintech with Sophisticated Phishing Tactics
Prince of Persia: The Sands of Time Remake to Launch in 2026, Ubisoft Announces Free Update for the Lost Crown
OnePlus Ace 3 Pro Tipped to Get a Significantly Larger Battery Than Its Predecessor

Leave a Reply

Your email address will not be published.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