Tesla (NASDAQ: TSLA) hit a market cap of over $400 billion after Wednesday’s stock price added an additional 6.42 percent during trading. It is the first time the market capitalization of the electric automaker has peaked at $400 billion since it has closed at a record high of $2,153.17.
During trading on Wednesday the company traded as high as $2,166, marking a new high for TSLA shares.
In Tesla’s favor a series of positive events occurred to push the company’s value to stratospheric heights. In addition to attracting an abundance of price target raises from many Wall Street analysts, the company has used in-house advances in technological enhancements to push its investment potential to new heights.
The most recent price increase target came from Jefferies’ Philippe Houchois, who more than doubled his TSLA stock outlook from $1,200 to $2,500 based on the expected developments that could come from the highly anticipated Battery Day case. On September 22nd, Tesla will hold Battery Day along with its annual Shareholder Meeting.
Tesla will also conduct a 5:1 split on its common stock on Monday, August 31st, while stock deliveries will take place on August 28th. Any registered stockholder on August 21, 2020 will receive a dividend of four additional commons stock shares for each share owned on that date by the investor.
The company aims to make shares more affordable to young investors who are unable to afford the company of the electric car manufacturer, which so far this year has risen more than fivefold.
Tesla’s stock price increase during 2020 may be attributed to a variety of factors. One is the growing demand for the company on the Chinese market, thanks to its production facility in Giga Shanghai. Tesla currently manufactures the Model 3 in China, which is fast becoming the most common electric vehicle on the market.
Tesla has recorded its fourth consecutive profitable quarter in Q2 2020 and has once again managed to beat Wall Street’s expectations.
Finally, the upcoming Battery Day for the company was identified as a potential trigger for the stock of the automaker. Tesla is rumored to unveil a million-mile capable battery pack at the event, and the company is also expected to outline its plan for cell development to the public.
In a matter of 10 years Tesla has gone from an unexpected rival to the Wall Street trend. TSLA stock has since soared to more than 100 times its valuation, since its Initial Public Offering for $17 in 2010. The business has also moved ahead impressively in its own right to build renewable energy and clean transport by inviting other businesses to support its mission. Tesla’s rally has elicited support from other automakers seeking to reach the market and boost competition in the young, but high-tech EV field.
Reported by Teslarati.
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