Tesla stock is less than 50 trading days has doubled in price from $1000 to $2000, according to analysts, there are a number of reasons.
Shares Of Tesla Inc. (TSLA) rose by 6.56% in after-hours trading on Thursday, hitting a record historical level of $2 001,83 and setting a daily record at $2 021,99 in the course of trading. This is a new 52-week high and doubling the price from 10 June, when Tesla’s shares has exceeded the price of $1,000 per share. Shares rose more than 378% year on 806,5% over the last 12 months.
Analysts at different investment firms, in most cases, explained the growth potential inclusion of Tesla stock in the S&P 500 and the potential positive effect of the forthcoming trade after stock split five to one 31 August 2020.
On the one hand, step through the procedure of crushing Tesla stock was perceived by the market positively, as it will reduce the strong growth in the share price, making it more affordable for retail investors. Every registered shareholder as of August 21 will receive four additional common shares for each held at the time share.
At the same time, this procedure is technical and does not add value to the stock, besides the presence of the client of offers from Robinhood, and other brokers for the purchase of even one share of Tesla makes profit from the stock split is less obvious. Therefore, it seems that it’s not in the upcoming split, or not only in it.
A more significant factor in growth potential appears to be the inclusion of Tesla stock in the S&P 500, the possibility that the company received because of its strong profit performance. Publishing company Tesla profits for four quarters in conditions when the global automotive industry reported strong losses in the context of a pandemic, increases the demand for stocks.
The increased demand for stocks is probably the main factor in the growth of Tesla stock in recent quarters. Experts on wall Street say the growth of the trading volume in shares of Tesla on Thursday, it was 13 million shares.
Credit Suisse analysts assume that the inclusion of Tesla stock in the S&P 500 could trigger even more activity in Tesla stock because it will increase the volume of investments coming from various pooled investment funds.
According to Bloomberg, on Wednesday, the largest exchange traded Fund ARK Innovation ETF (NYSE: ARKK) recorded the highest inflow of investments to buy shares of Tesla (TSLA) to $124 million
Marketinfo.pro also wrote that the data Robintrack, a website that tracks the assets of Robinhood, recently revealed that Tesla’s shares are second only to Apple in popularity in trading app Robinhood.
Investors also took into account a significant increase in target price by analysts for the last two months.
Latest news Tesla also was positive for the stock. On Thursday, the Global Times, citing its own sources reported that Tesla will produce a car Model Y, made in China, at its plant in Shanghai, starting in 2021.
According to Nikkei, the largest supplier of batteries Tesla, Panasonic plans to invest more than $100 million next year in the production of batteries for Tesla factory in Nevada. Thus, in addition to increasing production capacity at the plant, the company increases the capacity of future batteries.
Investors also expect important announcements on 22 September, when Tesla will make his long-awaited “day of the battery”, where will present the innovative batteries.
Moreover, many analysts are very optimistic regarding plans for Tesla to supply batteries to third party manufacturers. This will create an additional stream of income that can be another momentum stock in addition to Tesla’s efforts to open new factories in the United States and Germany.