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Tesla Stock Reaches $2,000 Amid Soaring Interest in EV Companies, 5-to-1 Stock Split Announced

posted by martyb on Saturday August 22 2020, @12:35PM   Printer-friendly
from the ev.com-bubble? dept.

Freeman writes:

Tesla stock reaches $2,000 amid soaring interest in EV companies:

Tesla's stock closed at a record high of $2,000 on Thursday, pushing the company's market capitalization to $370 billion. Tesla has been on a weeklong rally since announcing a five-for-one stock split. The split will be distributed to anyone who holds the stock tomorrow—Friday, August 21.

A little more than two months have passed since Tesla's stock first reached $1,000 per share. Last month, Tesla announced a solid second-quarter profit of $104 million. It was the fourth straight quarter of profits.

That could qualify Tesla for inclusion in the S&P 500 stock index. If Tesla wins a slot in the S&P 500, funds that track the index would need to buy Tesla shares. That could push the stock price up even further.

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  • (Score: 0) by Anonymous Coward on Sunday August 23 2020, @12:29PM

    by Anonymous Coward on Sunday August 23 2020, @12:29PM (#1040756)

    Yes, but the same idea applies even with a more popular stock, it just takes more suckers. Just look at all the people that bought Enron and MCI Worldcom before they collapsed. Or the myriad tech companies that don't do anything other than disrupt with no business model. There's tons of examples out there were market cap has no meaningful relationship with the actual value of the company. It's just a measure of how effective the company bullshit artists were at convincing people to buy in.

    But, it is at least marginally better than the share price that the DJIA uses to pick it's membership. There's even less relationship between actual value of the business and share price between splits, reverse splits and stock buybacks.