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Deutsche Bank dubs Tesla (TSLA) the ‘most remarkable market story of them all’ in 2020

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Tesla (NASDAQ:TSLA) shares have seen a stratospheric rise this year, with the electric car maker now having a market cap of $590 billion. Amidst this immense growth, as well as its impending inclusion into the S&P5 500 index, Tesla may very well be poised to become a macro driver of sorts next year. 

In a recent note, Deutsche Bank strategist Jim Reid stated that it is pretty obvious that Tesla’s performance in the stock market has particularly stood out in 2020. “It has increased +704% and is now larger than the next five largest global auto companies combined,” Reid remarked

Reid lauded Tesla for its growth this year. He also highlighted that given its current size, the electric car maker could very well have notable effects on the stock market in 2021.

“In a remarkable 2020, Tesla might just be the most remarkable market story of them all. Given its colossal size and that of the tech sector, their paths in 2021 will probably be a big macro driver of markets. Investors in all asset classes might have to assess whether valuations are justified and sustainable,” the Deutsche Bank strategist noted. 

Tesla’s massive size today stands as a huge testament to CEO Elon Musk’s vision of a future powered by sustainable energy. This is highlighted by the fact that Tesla will be kicking out Occidental Petroleum, a company that has its roots in fossil fuels, from the S&P 100 index when it joins the S&P 500 later this week.

What is rather interesting is that Tesla is nowhere near done. The company is still yet to fully roll out its Full Self-Driving and Autopilot systems, and its solar and battery storage business is yet to be fully ramped. 

Tesla stock has risen by over 656% in 2020 as of Tuesday’s closing bell. In comparison, the Dow Jones Industrial Average has gained 5.8% so far this year, and the S&P 500 index has risen 14.4%. The NASDAQ Composite Index, on the other hand, exhibited an impressive 40% surge in 2020. 

As of writing, Tesla stock is trading down 1.51% at $623.68 per share. 

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Deutsche Bank dubs Tesla (TSLA) the ‘most remarkable market story of them all’ in 2020
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