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Tesla's Stock Continues Hot Streak With New Record High

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Tesla's Stock Continues Hot Streak With New Record High

Ever since announcing a surprisingly high number of car deliveries in the second quarter, Tesla Inc's (NASDAQ: TSLA) stock has been unstoppable. The day after the announcement, the stock closed at a new record high of $1,208.

After a long Fourth of July weekend, Tesla's stock opened at $1,276 and continued upward throughout the day, finishing with a new record close of $1,371. This run continued in the after-hours session, with shares up another 4.3% at time of publication.

See Also: Tesla Demonstrates Why Short Selling Is So Much More Dangerous Than Going Long

Benzinga's Take: It's looking more and more likely the company will be added to the S&P 500 index. Inclusion in the index could bring an influx of buying, as institutions are forced to hold Tesla stock to match the index, compromised of the 500 largest companies in the U.S.

Automobile sales are just the beginning for Tesla. While its cars have a high margin compared to the rest of the industry, Tesla's potential with Full Self driving software, energy storage, solar production and custom silicon chip design, the potential for Tesla is huge.

The market is finally catching on, and the stock price is reflecting that. Currently valued at $254 billion, far exceeding the market cap of other automakers, Tesla looks to soon approach other massive tech valuations such as Microsoft Corporation (NASDAQ: MSFT) and Apple Inc (NASDAQ: AAPL).

Photo courtesy of Tesla.

 

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