In a tumultuous year for stocks, few stories have been as dramatic as the breakup of Tesla Inc.
Electricitycar manufacturer led by billionaire Elon Musk, it will begin trading on Monday as a member of the S&P 500 Index, with the limit of a series of 2020 milestones. company has become current after a rebound eight times this year.
Below are six charts showing what a wild trip has been like and why volatility may be far from over.
The long view
Tesla’s revenue growth has been disorderly this year, but its shares are poised to make its sixth consecutive quarterly gain as traders focus on long-term potential.
Fast moving target
Analysts have struggled to keep up with the exuberance of Tesla investors, who continued to increase stocks despite being smaller. disappointments and warnings about the fact that the stock “dramatically overvalued. ”Tesla shares closed at $ 695 on Friday. At this time last year, the 12-month average target on Wall Street was $ 58.30.
Massive movements
Tesla has been one of the most volatile American stocks this year. It is now common for the value of one-day fluctuations in Tesla shares to exceed the market capitalization of major carmakers such as Fiat Chrysler Automobiles NV, Ferrari NV or BMW AG.
Technical extremes
Tesla’s 14-day relative strength index exceeded the “overbought” interval by nearly three out of every 10 trading days this year, usually a sign that stocks are poised for a reversal. It wasn’t for Tesla, which closed Friday at an all-time high.
Highly valued
Tesla’s valuation is one of the most contentious issues between oxen and bears. Goldman Sachs says the shares are worth $ 780; JPMorgan’s target price is $ 90. Tesla’s valuation, both on the basis of price to earnings and on the price of sale, is significantly higher than both Apple Inc. as in the NYSE FANG + index of megacap technology stocks.
The way forward
Skeptics say Tesla’s momentum may be broken after its inclusion in the S&P 500 as one of the heaviest members, but there are precedents for continuing the rally. Like Tesla, Berkshire Hathaway Inc. it debuted at large with a strong weighting and, after a brief sale, resumed its advance to surpass the benchmark for the next five years.
– With the assistance of Karen Lin, Jan-Patrick Barnert, Kenneth Sexton and Brendan Walsh