Tesla Market Cap Surges, Topping $500 Billion for First Time

Tesla shares are on an electrified roll as the EV company heads toward membership in the S&P 500 on Dec. 21.
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Tesla  (TSLA) - Get Report shares' strong performance in 2020 hit another milestone on Tuesday, with the electric vehicle maker reaching a market valuation of $500 billion for the first time.

In recent weeks, the Palo Alto, Calif., company's surge in value has been driven by its approaching inclusion into the S&P 500 trading index. Tesla will join the index on Dec. 21. 

The stock at last check jumped 4.7% to $546.19 on the Nasdaq. 

Tesla shares are up by a factor of six over the past 12 months. The stock was trading at about $90 at the start of the year. 

Chief Executive Elon Musk has been one of the biggest beneficiaries of the stock's rise. Musk's net worth jumped $7.2 billion on Monday, giving him an estimated worth of $127.9 billion.

Through 2020, Musk has increased his wealth by more than $100 billion, according to the Bloomberg Billionaires Index. Musk overtook Microsoft  (MSFT) - Get Report Co-Founder Bill Gates to become the world's second richest person behind Amazon's  (AMZN) - Get Report Jeff Bezos. 

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In October, Tesla reported Q3 revenue of $8.77 billion (up 39% annually) and non-GAAP earnings of 76 cents a share. Those numbers beat the FactSet consensus estimates of $8.28 billion and 56 cents. 

GAAP earnings per share of 27 cents, which were hurt by expenses related to the vesting of stock awards granted to Musk, fell short of a 37-cent consensus.

In line with what was previously shared via Tesla’s third-quarter-deliveries report, Tesla put out 139,593 vehicles in that period, up 54% sequentially and 44% year over year. 

Model 3 sedan and Model Y crossover deliveries rose 56% annually to 124,318, while Model S luxury sedan and Model X SUV deliveries fell 13% to 15,275.