Tesla Stock Rises 13%... Climbs to 10th in US Market Cap Rankings

S&P500 Index Surges Consecutively on Inclusion Expectations
Market Targets Already Surpassed... Investment Floods In Despite Overvaluation Debate

[Asia Economy New York=Correspondent Baek Jong-min] The stock price of electric vehicle company Tesla shows no signs of stopping its rise.

[Image source=Reuters Yonhap News]

According to CNBC, on the 13th (local time), Tesla's stock price traded at $1,755.90, up 13% from the previous day. According to data provider FactSet, Tesla's market capitalization increased by $380 billion on that day, entering the top 10 in the U.S. stock market by market cap.

Tesla's stock price surpassed $1,000 on the 29th of last month and hovered around the $1,300 level for a while, but since the announcement of delivering 90,000 vehicles in the second quarter this month, the upward momentum has expanded again, passing the $1,500 level and reaching the $1,700 level in one leap on that day. During the trading session, it rose to as high as $1,794, making entry into the $1,800 range visible.

Tesla's stock price has risen 70% in about two weeks, over 50% this month, and the year-to-date increase is about 300%.

CNBC reported that Tesla is expected to record its fourth consecutive quarterly profit with the earnings announcement at the end of this month, meeting the conditions for inclusion in the S&P 500 index. If included in the S&P 500 index, additional buying from major institutional investors and funds is highly likely.

Because the stock price has risen so steeply, concerns are also growing. Larry McDonald of Bear Traps Report evaluated that the reason for Tesla's stock price rise is not corporate fundamentals but expectations for inclusion in the S&P 500. He expressed concern, saying, "If Tesla is included in the S&P 500 index, exchange-traded funds and index-tracking buying will flow in, but short-term investment funds will exit like an ebb tide."

Tesla's stock price has already surpassed the highest price target set by analysts. According to FactSet, the highest price target for Tesla is $1,525. JP Morgan has a positive outlook, forecasting Tesla to achieve $100 billion in annual sales by 2025, but its target price is only $1,500.