Even if you're not a Telsa fan, it's a shift we should all be cheering about.
An energy paradigm shift is underway. According to Bloomberg, "Tesla Inc.’s market value has surpassed Exxon Mobil Corp.’s in a sign that investors are increasingly betting on a global energy transition away from fossil fuels." Bloomberg touted the turning point as a "symbolic energy shift" that could signify a seismic transformation taking place in the sector.
It's reported that, "Elon Musk’s Tesla, now at $201 billion in market capitalization, is surging on the billionaire’s optimism that his company can avoid a second-quarter loss. Exxon, which dropped to $185 billion, is reeling from the worst crude-price crash in history. The largest oil company in the Western Hemisphere is preparing to cut some of its U.S. workforce."
The stock closed yesterday at an all-time record marking a milestone for Elon Musk's electric car company. According to Marketwatch, "Tesla Inc. shares ended at a record $1,079.81 on Tuesday, sending the Silicon Valley car maker's market cap above $200 billion for the first time."
And there's possible growth ahead for Tesla if the company posts a profit for the fourth consecutive quarter. "Inclusion in the S&P 500 might push shares higher into, and after, the second quarter Tesla delivery report, due in coming days. S&P 500 index funds might start to prepare for index inclusion if deliveries beat estimates," according to Barron's.
This week marks Tesla's 10-year anniversary since its IPO. Since its debut a decade ago, "Tesla’s shares are priced [more than] $1,050—that’s well over a 4,000% return since the close of its first day as a public company. Even during this ongoing coronavirus pandemic, shares are up more than 140% this year. Along with Netflix, that type of stock performance puts Tesla in rare company, as it has outperformed other tech giants like Amazon and Apple," according to National Interest.
CNBC spoke with Quint Tatro, President of Joule Financial, about the stock's recent rise. Tatro notes, “Tesla just has this wonderful history of proving every single person wrong, so it’s very tough to bet against this company, this stock, or Elon.”