Elon gets his $2B bonus... For the 1st time in its 17-year history, Tesla has posted four straight profitable quarters in a row. The stock surged on the news (surprise), making Tesla the 12th biggest company in the US by market value. Despite corona-conomy slowdowns (like its Fremont factory partially shutting), Tesla hit these numbers:
And an invite to the S&P 500 Club... Maybe. The famous S&P 500 index tracks stocks of the 500 most valuable public companies in the US. To be included, companies must post four straight profitable quarters.
Context is king... Tesla stock has nearly 4X'd in value since peak pandemic in mid-March. Now it could become the largest company by market value to ever join the S&P. But Tesla has a tiny market share in the global car market, and has lost hundreds of millions since 2018. Toyota delivered 30X more cars than Tesla last year and is consistently profitable... but it's worth less than Tesla. After this streak, investors are expecting Tesla profits going forward. If that doesn't happen, the stock will likely fall.