Tesla Has Overtaken Bank Of America And American Express Combined In Terms Of Capitalization
Tesla quotes have been rising for nine of the last 11 trading sessions on expectations of the publication of the company's reports, writes the WSJ.
Since the beginning of the year, Tesla's capitalization has grown more than 3.5 times - to $286.5 billion. Thus, the company's market value exceeds the capitalization of Bank of America and American Express combined, according to FactSet data.
Tesla shares ended trading on Monday down 3.1%, to $1,497 apiece, but during the session, the company's price growth reached 16%. At the same time, the company's stock cost more than Alphabet paper, MarketWatch writes.
Some investors expect the electric car manufacturer to report a profit on the results of the past quarter, writes the WSJ; this will allow the company to qualify for inclusion in the S&P 500 index, which could further boost trading in Tesla shares.
Tesla plans to publish its second-quarter reports on July 22.
To be included in the S&P 500, a company must record profits for four consecutive quarters. Tesla has made a profit of three quarters in a row, which is the longest period in which the company has been profitable.
Tesla could become the 13th largest company among the index's components and sit behind JPMorgan Chase, whose capitalization is $293.3 billion.
At the same time, the consensus forecast for Tesla's share price, based on the estimates of 32 analysts polled by FactSet, is $778 a piece. Only some analysts estimate the company's stock price to be above $1,000 apiece.
Adam Jonas of Morgan Stanley has improved his forecast for Tesla's share price to $740 apiece, writes MarketWatch. He also presented a "bullish scenario" in which the company's securities will rise to $2070 per share. According to analyst estimates, Tesla's production and deliveries in the second quarter significantly exceeded Morgan Stanley's forecasts.