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Tesla (TSLA) stock managed to hit its new all-time high above $1750 on Monday, July 13, reaching a new milestone of $300 billion market cap. However, it closed with a loss of 3%, at $1,497.06.
Tesla Inc (NASDAQ: TSLA) stock started the week on a high footing as the share price jumped over 16.5% on Monday pre-opening. In the early trading session on Monday, Tesla stock crossed $1750 levels hitting an important milestone of a $300 billion market cap. Just to compare: a year ago TSLA stock was trading at $253.
The latest price rally in the Tesla stock comes with Elon Musk’s recent announcement of the Model Y crossover and its further price reduction. Additionally, Elon Musk also announced that the Standard Range RWD will no longer be available. However, as its replacement, the company has announced a new 230 mile-range-variant. Musk added that the company will focus more on the long-range RWD version having a range of over 300 miles per charge.
But Monday’s session remained volatile for Tesla investors as shorters took the charge in the latter half of the day. Tesla stock ended Monday’s session 3% negative slipping below $1500 levels. On Monday closing, Tesla stock was trading at $1497 with a market cap of $277 billion.
Tesla is soon to release its quarter Q2 results on July 22 next week. If the company remains successful in delivering a net GAAP profit for the fourth consecutive quarter, the stock will soon enter the S&P 500 index (INDEXSP: .INX). Last week itself, Tesla released its Q2 2020 deliveries beating analysts’ expectations by a handsome margin. The company reported over 90,000 deliveries in Q2 2020 against the expected 72,000.
Thus, with over 25% more than expected deliveries, it is even more likely that Tesla will deliver a net profit for the fourth consecutive. Not to forget, these massive deliveries come at a time when Tesla was having a shutdown in May in its Fremont factory in California.
Massive Growth Rate in 2020 that Boosts Tesla Market Cap
Elon Musk, the man behind Tesla’s fortune has made every effort to flip the game in his favor. Over the last year, Tesla has surprised every analyst on Wall Street with its production output. In fact, Tesla’s journey to rapid growth started in the second half of 2020.
This year has been a phenomenal one as well for Tesla investors. The Tesla stock is currently trading at 250% premium year-to-date as the company makes swift expansion plans.
The recent surge in Tesla stock has also put CEO Elon Musk in the spot of the world’s top ten richest people. Elon Musk is the seventh wealthiest person with a net worth of $70.5 billion and overtaking investing giant Warren Buffett. With Tesla’s massive performance, Elon Musk’s wealth has surged by an additional $45 billion in 2020.
Outperforming all the negative sentiments of the global market, Tesla has emerged as a clear winner. In fact, it is now the world’s most valuable car companies surpassing Toyota Motor Company (NYSE: TM).