Tesla shares are more valuable than Coca-Cola, Disney, and ExxonMobil. This is coming after four consecutive profitable quarters. The electric car manufacturer is now set to join the S&P 500 index. This step could make Tesla one of America’s top companies.
It is reported that Tesla made $104 million in profit in Q2 2020 on Wednesday, despite the fact that the Fremont manufacturing plant was shut for nearly half of that period. Tesla shares made a 5% bullish run in premarket trading.
Tesla’s Stock
Tesla’s stock made a 280% bullish run this year, due to investors’ faith in the person behind the brand, Elon Musk (CEO). Elon Musk has vowed to bring electric cars into the mainstream. Investors are anticipating Tesla’s move to join S&P 500, as a catalyst for the recent bullish run.
According to Bespoke Investment Group, if Tesla were in the S&P 500, it would be the best performing stock year-to-date. With a market value of more than $295 billion, it would be the 14th most valuable company in the index.
Experts Opinion About Tesla’s Stock
According to Deutsche Bank analyst Emmanuel Rosner, Tesla’s share of the global auto market is expected to hit 0.8% in 2020. That’s up from 0.1% in 2017, but remains “minuscule.” For comparison, Volkswagen’s global market share is roughly 14%.
Also, Bespoke noted on Wednesday that Tesla’s rise “harkens back to the [dot-com] days of the late 1990s,” referring to the internet bubble that ultimately sent stocks crashing.
“This sustained level of profitability is key for the bulls and speaks to a business model which is staying out of the red ink despite this unprecedented Covid-19 dark storm,” Wedbush analyst Daniel Ives told clients.
Fears about overvaluation have also cropped up in the tech sector as companies like Alphabet, Apple and Amazon keep pushing higher.
However, according to the report and evaluation, Tesla is said to be the most valuable automaker in the world earlier this month.
So, as an investor reader on Entrepreneurs.ng what’s your take on Tesla’s stock?
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