Tesla Smashes Expectations as Giddy Wall Street Signals $2,000
July 23, 2020 @ 14:50 +03:00
In the second quarter of 2020, Tesla secured a net income of $104 million – marking the first four continuous quarters of profitability in the company’s history. Now, it is eligible for consideration to be placed on the S&P 500 index.
According to Dan Ives, an executive at Wedbush Securities, Tesla is on track to reach $2,000 per share. Analysts say a confluence of three factors could catalyze the Tesla stock until the year’s end. They are the firm’s profitability in China, eligibility for the S&P 500 index, and high revenues.
In the official Q2 2020 financial results, Tesla said its operating margin neared 5% in the last 12 months. Over time, Tesla said it expects the firm’s profitability to reach industry-leading levels.
The company said: Our profit improved sequentially due to fundamental operational improvements… For the trailing 12 months, our GAAP operating margin reached nearly 5%. We expect our operating margin will continue to grow over time, ultimately reaching industry-leading levels.
In the near-term, it also sets Tesla to be included in the S&P 500. There are five essential requirements to be included in the index:
A market cap of $5.3 billion or higher
The public owns 50% of shares minimum
Profitability over four recent consecutive quarters
Tesla now meets all five requirements, with the latest quarterly financial results marking four consecutive profitable quarters.
Tesla Smashes Expectations as Giddy Wall Street Signals $2,000, CCN, Jul 23