Original title: crazy! Tesla, Inc. 's share price rose more than $1700, making it the 10th largest company by market capitalization in the United States: Tencent Securities
Tencent Securities, July 13 (Xinhua) Tesla, Inc. (NNASDAQ:TSLA) shares hit another record high on Monday, extending the stock's record rising trend, as the valuation of the electric car maker led by Elon Musk continues to rise, there is growing speculation that the company's shares will soon be included in the S & P 500 index, prompting investors to buy the stock.
Tesla, Inc. 's market capitalization rose to $321 billion after trading opened on Monday, surpassing Procter & Gamble Co to become the 10th largest company in the US by market capitalization, according to FactSet, a financial information provider. As of press time, Tesla, Inc. 's share price jumped 11.99% to $172.986 billion, giving it a market capitalization of $320.8 billion after hitting a high of $1794.99 and approaching the $1800 mark.
Tesla, Inc. 's share price has risen more than 300% so far this year. In early July, Tesla, Inc. overtook Toyota to become the world's largest carmaker by market capitalization. In July alone, the company's shares have risen more than 55% in trading so far. Earlier, Tesla, Inc. released data that its shipments easily exceeded expectations in the second quarter, with the company delivering about 90650 vehicles in the quarter, far exceeding Wall Street analysts' average expectations of 72000.
Investors now expect Tesla, Inc. to make a fourth consecutive quarter of earnings under GAAP when he reports second-quarter results on July 22nd, meaning the company's shares could be considered for inclusion in the S & P.
Tesla, Inc. 's valuation and its controversial founder have faced fierce debate on Wall Street for years, with outspoken investors on both sides.
Some, including Larry McDonald, editor of the bear market trap report (Bear Traps Report), argue that Tesla, Inc. 's recent rally was driven not by strong fundamentals but by investors driving up the stock before it could be included in the S & P. "by buying Tesla, Inc. 's stock now and pushing up its price, the front-runners are forcing the S & P 500 to give it more and more weight," he wrote in a recent report. As a result, exchange traded funds (ETF) / index will be forced to buy more Tesla, Inc. shares. Then, the 'hot money' will withdraw and let the index bear it alone. "
Meanwhile, Adam Adam Jonas, a widely watched Morgan Stanley auto analyst, said on Friday: "Tesla, Inc. 's almost unchallenged dominance may be numbered." He rated Tesla, Inc. 's shares as "underweight", with a target price of $740, 52 per cent below the stock's closing price on Friday.
On the other hand, many investors are bullish on Tesla, Inc. 's stock, including JMP Securities analyst Joe Osha, who said in a recent report to clients that Tesla, Inc. 's annual revenue would reach $100 billion by 2025. In its most recent full fiscal year, Tesla, Inc. generated $24.6 billion in revenue. However, although Ausha is bullish on Tesla, Inc. 's stock, his target price of $1500 is still lower than the current trading price of the stock.
According to analysts' expectations compiled by FactSet, Wall Street analysts' top target price for Tesla, Inc. 's stock is $1525, which is also lower than the stock's current trading price, while the average target price is only $805. (nebula)