Tesla (NASDAQ: TSLA) saw its market capitalization exceed $500 billion for the first time on Tuesday after the stock hit $527.48 per share.
Fundamental analysis: Musk becomes the second richest person in the world
Tesla stock price surged higher this week to exceed the $500 billion mark. Earlier this year, the company became the first $100 billion publicly listed American carmaker.
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Stock received multiple boosts this year. During their latest earnings presentation, Elon Musk’s company said it shipped a record 139,300 vehicles during the quarter. Moreover, shares raced higher on the announcement that Tesla is set to become a part of the S&P 500 index on December 21, which will make it easier for asset managers to get TSLA exposure.
A series of positive catalysts pushed bank’s analysts to upgrade their price targets on TSLA, with Morgan Stanley also upgrading Tesla’s stock to Overweight last week.
“To only value Tesla on car sales alone ignores the multiple businesses embedded within the company, and ignores the long term value creation arising from monetizing Tesla’s core strengths, driven by best in class software and ancillary services,” analysts wrote in a note.
The latest push higher in Tesla share price saw founder and CEO Elon Musk become the second wealthiest person in the world, with only Jeff Bezos in front. Musk is estimated to be worth $128 billion.
Technical analysis: Fresh record highs
When a particular stock prints record highs and in addition closes at the high, investors must be really liking its outlook. Tesla share price closed at $574.00 on Wednesday, the highest level it ever recorded.
It’s hard to argue for more bullishness from this perspective. Only this month, shares of Tesla gained nearly 48% to hit Tesla buyers’ first target – $550.00. A likely continuation of this bull run will see Teska share price travel to $613 in December. Oppositely, the nearby support is located near the $500 handle.
Tesla’s market cap went over $500 billion for the first time ever to promote its founder Elon into the second-richest person in the world.