TSLA Stock Hits All-Time High as S&P 500 Expectations Rise
On Thursday, Reuters published an article titled “Tesla appears poised to electrify S&P 500”, which was then syndicated to other news outlets throughout the day on Friday. The article may have ignited buying interest in the stock by highlighting the implications of S&P 500 inclusion. In 1999, Yahoo surged 64% in five trading days between the announcement that it would be included in the S&P 500 and its date of inclusion.
Reuters also cited Ivan Cajic, head of index & ETF research at Virtu Financial, who estimates that fund managers would need to own about 25 million shares of Tesla stock upon inclusion in the S&P 500 index.
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During the afternoon, Elon Musk replied to a tweet about the Model Y, highlighting the advancements Musk expects when production of the vehicle begins at Giga Berlin next year.
“Berlin Model Y is the one to watch. That is a revolution in automotive body engineering (finally).” - Elon Musk
In a follow-up, one twitter user asked about a “single or two piece frame cast” to which Musk replied with “even more”. In response to a question asking if Musk was referring full-body casting, Musk replied with a suggestive side-eye emoji.
It appears Tesla will push casting sizes even further than they already have with the Model Y when Giga Berlin starts production.
Writing Assistance by Pranshu Agarwal
Disclosure: Rob Maurer is long Tesla stock and derivatives.