Tesla (NASDAQ: TSLA) has officially crossed the $500 billion market capitalization threshold on Tuesday morning after its price per share hit $527.48 early in the trading session. It marks the first time that the all-electric automaker has managed to cross this number with its valuation, fueled by a skyrocket in the share price through the past week.
Tesla shares are up an additional 3.08% this morning at the time of writing, trading at $537.74. Shares were as high as $543.17 during the first moments of the session.
2020 has treated Tesla extremely well so far, with everything from stock price records to delivery and sales numbers reaching an all-time high. The automaker has been one of the few companies to sustain growth and positive trends through a year that has been especially difficult for many sectors, automotive being one of the hardest hit. However, Tesla’s ability to become more than just a car company has helped surge the stock price from $86 to over $540 so far this year.
The most recent uptrend in stock price can be attributed to the announcement of Tesla’s planned inclusion to the S&P 500 Index, which was revealed last week. The Index released a statement that it would be officially welcoming the all-electric car and sustainable energy company into its exclusive group of companies. Tesla will join Ford and GM, two long-time members of the S&P 500, as automakers publicly traded in the Index.
Tesla’s surge has been a year-long occurrence, however. In January, the company became the first $100 billion publicly listed U.S. carmaker, CNBC reported this morning. The stock price has slowly but surely boosted up to its current value, mostly due to technological developments and software improvements, as well as Tesla’s establishment as the leader in sustainable transportation.
The company has also been able to mark five consecutive profitable quarters thanks to increased demand and more efficient manufacturing techniques. Manufacturing is a puzzle that Tesla continues to solve, as CEO Elon Musk has stated several times that it will be the company with superior manufacturing. Eventually, other automakers will catch up to Tesla in terms of the quality of electric vehicles, Musk says, but his company will succeed in manufacturing. Musk has stated in the past that Tesla will be “head and shoulders” above all other carmakers in this portion of the production process.
With the increased valuation, Musk has slipped into the second spot in the World’s Richest List, which is tracked by Forbes. After passing Microsoft billionaire Bill Gates during this week’s continuance in stock price, Musk only trails Amazon CEO, Jeff Bezos. Musk has gained significantly from the increase in price per share, but figuring out how to accelerate the world’s transition to sustainable energy is his main focus.
Disclosure: Joey Klender is a TSLA Shareholder.