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With the company locked in the S&P 500 index, some analysts expect the Tesla management to further split the shares to secure a position in the Dow Jones index next year.
As the year comes to an end, Tesla Inc (NASDAQ: TSLA) investors are among the most satisfied in the stock market that can be described as the most ‘chaotic’ in the recent market history. On Monday, Tesla shares continued scaling higher as they added approximately 7.13% to close the day trading at $641.76. However, they had dropped approximately 2.23% during Tuesday’s pre-market.
Since the calendar flipped, Tesla investors have seen their portfolio jump over six times. This has particularly been fueled by major fundamentals affecting the company’s core business positively. The notable success has occurred through increased competition in the electric vehicle industry, especially from Chinese EV companies.
Having approximately 947.9 million outstanding shares in the market, Tesla has seen its market valuation almost hit $600 billion. At the time of writing, the Tesla market valuation according to the metrics provided by MarketWatch stood at $567.83 billion. Tesla shares rallied over 800% in the past one year, whereby most of the gains happened during the first half of 2020. Notably, the rally was moderate in the past three months, whereby they are up approximately 53.42%.
Led by the ambitious CEO Elon Musk, Tesla has received its fair share of criticism during the last few months. Whereby some of its models have been recalled over time for technical failures. However, this has not deterred the company from venturing into new markets including Europe and India.
As a teaser to Tesla stock sellers, Musk unveiled the short shorts and recently topped it with its own tequila. As the year came to an end, Tesla significantly reorganized its market structure to adjust accordingly with its future prospects.
Among them, the company split its shares 5 to 1 ratio, indicated to sell shares worth over $5 billion through banks, and recently included in the S&P 500 index (INDEXSP: .INX).
2021 Tesla Market Prospects: Wha Investors Should Know
Having delivered a successful financial year, investors in the Tesla market are optimistic that the company will perform much better as the global economy recovers from the ongoing coronavirus crisis.
With the company locked in the S&P 500 index, some analysts expect Tesla management to further split the shares to secure a position in the Dow Jones index next year.
Speaking to media outlet CNBC on Monday Gene Munster, co-founder and managing partner at Loup Ventures, said he anticipates the company to evolve in the coming years and venture into different tech fields including the insurance market.
Meanwhile, Jim Chanos, Kynikos Associates president, warns investors to be careful of a possible bear market in Tesla stocks. “As long as the stock is going up, nobody cares,” he said. “But it’s once the stock starts going down, investors begin to cry foul.”
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