Tesla (NASDAQ: TSLA) has surged to an all-time high trading price on Thursday morning, reaching $507.76 following a two-day surge that was fueled by news of the company’s planned inclusion in the S&P 500.
The electric automaker’s had previously reached a high of $502.49 previously, which occurred in early September after the company’s 5:1 stock split in late August 2020.
The spike in company share price has been fed by recent news of TSLA joining the S&P 500, which was announced on Tuesday evening. Tesla was set to join the S&P during its quarterly reorganizing process but was snubbed in early September when many investors expected the announcement to take place. However, the S&P is now ready to bring the electric automaker into the index. When Tesla joins the S&P, it will be one of the ten largest companies in the index.
Before the announcement on Tuesday around market close, TSLA shares were trading at $408.09 but surged to over $450 within 90 minutes following the closing bell. The surge continued into Wednesday and Thursday trading hours and has skyrocketed nearly $100 since the S&P’s announcement.
Interestingly, TSLA’s large size due to its massive valuation could require the S&P to add the company in two or more tranches, instead of all at once. The index will require the consultation of the S&P Dow Jones Indices, who will decide if TSLA will join the index all at once.
TSLA shares have enjoyed substantial growth in 2020. As of the first day of the year, TSLA shares traded at $86.05. The company had several spikes in trading price as a result of tech developments, battery advancements, increases in demand, and an extension of their consecutive profitable quarter streak. The automaker is coming off of its biggest quarter as a company with record deliveries and production figures providing plenty of momentum as the year’s final quarter surges on.
At the time of writing, TSLA shares were trading at $504.29, up 3.63%, or about $17.60.