Investors who have owned stocks in the last year have generally experienced some big gains. In fact, the SPDR S&P 500 (NYSE: SPY) total return over the last 12 months is 61.9%. But there is no question some big-name stocks performed better than others along the way.
Tesla and its controversial CEO Elon Musk have gained a cult following of investors and supporters in recent years. Despite controlling less than 5% market share of the global auto industry, Tesla’s market cap has exploded to above $590 billion, making it the most valuable auto company in the world.
The biggest bullish catalyst for Tesla stock in 2020 was the stock’s addition to the S&P 500 index in December. Tesla joined the index as its sixth-largest member and by far the largest market cap company ever to join the S&P 500. Tesla has previously not qualified for admission to the S&P 500 due to the company’s lack of profitability.
At the beginning of 2020, Tesla shares were trading at around $425. When March kicked off, the stock was up to $710 despite news of the coronavirus spreading in China, prompting concerns about a U.S. pandemic.
By June, Tesla shares were back at new all-time highs above $1,000, with the stock as high as $2,318.49 in August prior to a five-to-one stock split.
Related Link: If You Invested $1,000 In Ford Stock One Year Ago, Here’s How Much You’d Have Now
Tesla In 2021, Beyond: The stock eventually made it back up to new split-adjusted highs of $900.40 in February 2021.
In recent days, the stock has pulled back from its highs, settling back down to $623.
Looking ahead, analysts are expecting Tesla’s stock to take charge in the next 12 months. The average price target among the 30 analysts covering the stock is $755.50, suggesting 22% upside from current levels.
© 2021 Fintech Zoom.com. Fintech Zoom does not provide investment advice. All rights reserved.