This archive report was first published on 14 July 2020.
On July 13, 2020, Tesla's stock price reached a record high, increasing by 7% on the previous day. This surge marked the latest leg of a two-week rally, which had seen the company's stock value rise by over 60%.
The price increase was attributed to investors' optimism about Tesla's potential to report a quarterly profit, which would be a significant milestone for the company. This expectation was fueled by the company's announcement of higher-than-expected second-quarter vehicle deliveries earlier in the month.
As a result of the stock surge, Tesla's market capitalization reached $310 billion, making it one of the most valuable companies ever considered for inclusion in the S&P 500 index. If added to the index, Tesla would be more valuable than 95% of the existing components and comparable in value to Procter & Gamble Co.
The potential inclusion of Tesla in the S&P 500 would have a significant impact on investment funds that track the index, requiring them to purchase tens of billions of dollars' worth of Tesla's stock. However, some analysts have warned of exuberance in the market, citing the high demand for bullish call options on Tesla shares.
Tesla's stock price has been on a remarkable rise over the past year, increasing by approximately 600%. The company's annual shareholder meeting is scheduled for September 22, 2020, at its Fremont factory in California, where it is expected to reveal significant advances in battery technology.
