TSLA Stock Hits All-Time High as S&P 500 Expectations Rise

Rob Maurer

S&P 500

(TSLA) -Get Report stock ended the week at all-time high close of $1,544.65/share as expectations for Tesla's second quarter results and possible S&P 500 inclusion 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.

For more analysis, please see the included video.

Musk Tweets

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.