Today, Tesla's (NASDAQ: TSLA) market capitalization has surpassed the $500 billion mark for the first time and is fixed there. This is an incredibly important milestone that demonstrates the company's strength and its investor confidence.
Tesla shares hit a new all-time high of $559.99 today to close at $555.38 and reached a market capitalization of $526.45 billion.
Tesla became the first car manufacturing company to ever reach and surpass half a trillion dollars in market cap. This demonstrates how disruptive the company's products are and reflects investor confidence that Tesla will continue to grow and develop steadily. Tesla has also become the seventh most valuable company on Wall Street, just behind Berkshire Hathaway.
A very important catalyst for the current rally was the announcement of the inclusion of the California-based company in the S&P 500 index. Index funds that replicate the S&P 500 will have to buy more than $50 billion worth of Tesla's stock ahead of its inclusion to the index on December 21. In addition, The company's scheduled inclusion in the S&P 500 could lead to $8 billion in demand from active US large-cap mutual funds, analysts at Goldman Sachs Group Inc. wrote.
At the moment, Tesla's market cap exceeds the combined value of the five most valuable automakers.
© 2020, Eva Fox. All rights reserved.
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Eva Fox holds zero shares of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.
About the Author
Eva Fox
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.
