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Tesla shares continue to rise to $ 500 per share after the stock split

2020-09-01T08:33:09.369Z

Tesla's share split ensures another price jump. Company boss Elon Musk wants to come to Germany this week - to visit Tesla's factory in Grünheide - and the biotech company Curevac.



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The record high greets every day: Tesla is now worth around 450 billion dollars on the stock exchange (pictured: CEO Musk)

Photo: Noah Berger / REUTERS

The price rally for Tesla shares will not end even after the stock split: The electric car maker's paper rose by more than 12 percent to just under $ 500 on Monday after Tesla's shares had been split as announced at a ratio of 5: 1.

By splitting up, companies want to make their share certificates visually cheaper and thus more attractive for small investors.

Within 6 months, Tesla has more than quintupled its stock market valuation on the Nasdaq and is one of the most successful US stocks of this year alongside Zoom and Moderna.

The market value is now more than 450 billion dollars - that is more than five times as much as the market value of the world's largest car maker Volkswagen (88 billion dollars).

In Corona times, US investors have apparently chosen some investment favorites that they keep buying despite rapidly rising valuations.

Another price driver in addition to the stock split: Tesla is about to be included in the US S&P 500 index after four profit quarters in a row: This means that investment funds that track the S&P 500 have to buy shares from Tesla as soon as these shares become part of the index .

Since many investors speculate that demand will rise as a result, they are driving the price even higher.

The price of Tesla shares had meanwhile more than sixfold since the corona crash low in March.

In view of the extremely high price level, even analysts have difficulties in finding reasons to buy Tesla shares - apart from the fear of missing out on the so-called momentum and further price increases.

Bank of America's John Murphy pointed to the expectation that the share price increases would allow Tesla to make lucrative capital increases that could finance accelerated growth.

However, he continues to view the share with fundamental skepticism.

Even Tesla boss

Elon Musk

(49) described Tesla shares as "too expensive" a few weeks ago.

Elon Musk wants to come to Germany - because of Curevac and the factory in Grünheide

Meanwhile, Musk is planning a visit to Germany.

He came because of a collaboration with the company Curevac, which is working on a corona vaccine, and because of the construction of the electric car factory in Grünheide near Berlin, as he announced on Twitter on Sunday evening.

"Tesla is building RNA microfactories as a side project for Curevac and possibly others," said Musk.

Because of this and because of the factory "I'm on my way to Germany this week".

Tesla initially did not provide details such as the locations and times of the travel stations.

The US electric car maker plans to produce around 500,000 vehicles a year in Grünheide from next summer, with around 12,000 jobs planned.

The complete environmental approval for the project by the state of Brandenburg is still pending, so Tesla is building on the site at its own risk.

Musk wants to hold talks about cooperation with the vaccine manufacturer Curevac.

It was only at the weekend that the bustling Tesla boss presented a technology to directly connect smartphones and the human brain.

In terms of market value, Tesla is way ahead of all other automakers - investors apparently see Tesla as the dominant company for the coming years.

For comparison: The three German automakers Volkswagen ($ 88 billion market value), Daimler ($ 55 billion) and BMW ($ 48 billion) are worth a total of around $ 191 billion on the stock exchange - Tesla alone comes in at $ 450 billion more than that Double.

la / dpa / Reuters

Source: spiegel

All news articles on 2020-09-01

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