- Shares of Tesla rose 7 per cent to close at an all-time high of $2,001.83 per share and market cap crosses $372 billion surpassing Walmart’s market cap.
On Thursday, Shares of Tesla rose 7 per cent to close at an all-time high of $2,001.83 per share.
This was the first time that the car manufacturer, headed by Elon Musk, reached the mark of $2,000 per share, also after this year’s rally that sent shares to skyrocket. Tesla climbed up as much as 8 percent in intraday trading Thursday to touch $2,021.99 per share before paring some gains.
The surge propelled Tesla’s market capitalization to almost $372 billion, surpassing Walmart’s market valuation of about $371 billion. Earlier in the year Tesla became the world’s most successful automaker after overshadowing the market value of Toyota.
This year, Tesla shares were on a tear, fuelled by strong vehicle delivery results, a streak of profitable quarters, and eligibility to be included in the popular S&P 500 index.
The Company announced its first 5-for-1 stock split earlier this month. Through shareholder will receive four additional shares for each of their own at the end of Friday’s trading, to be issued at the end of trading on August 28. On August 31 Tesla will start trading on a stock-split-adjusted basis.
Tesla said Tuesday it was seeking a five-for-one stock split in its share price this year after a huge rally.
Tesla said in a press release at the end of trading on 28 August that each shareholder would receive four additional shares for each share they own. Stock splits do not affect the market value of a company but only the prices of individual shares.
Despite the firm having a tiny fraction of the overall production of the industry, the rally left Tesla as one of the most successful automakers.
To be listed in the S&P 500, companies must be headquartered in the United States, trade on the New York Stock Exchange, Nasdaq, or Cboe, have a market capitalization of at least $8.2 billion, and show four consecutive quarters of income in compliance with commonly accepted accounting standards (GAAP).
Now that Tesla has met the eligibility requirements of the S&P 500, a spokesperson for S&P Dow Jones Indices told Business Insider that she will be added to a pool of other eligible candidates and considered for inclusion when an opportunity presents itself.