Tesla Is Now Bigger Than JPMorgan and Procter & Gamble. Next Up: Walmart
By Gunjan Banerji
Tesla Inc.'s shares vaulted toward another record Monday,
continuing a head-spinning rally for the electric-car maker that
has made it more valuable than many of the titans of American
The company's shares jumped 13% Monday to $1,744.11 and have
more than quadrupled in value in 2020. The stock has climbed in
nine of the past 10 sessions, rising nearly 30% in the past three
trading days alone.
In comparison, the S&P 500 and Dow Jones Industrial Average
are sitting on small losses this year and the U.S. economy has
entered a recession as the pandemic put a halt to business activity
around the country.
How big has Tesla gotten? Tesla's recent surge puts its market
value of roughly $321 billion above that of JPMorgan Chase &
Co., the biggest bank in America; Procter & Gamble Co., and
UnitedHealth Group Inc. The electric-car maker is also bigger than
Bank of America Corp. and Wells Fargo & Co. combined, according
to FactSet data.
The rally has been driven in part by optimism surrounding the
company's coming earnings report on July 22. Some investors are
expecting the car maker to deliver a surprise profit. That would
make the company eligible for inclusion in the S&P 500 index,
potentially driving even more activity around its shares. At least
$1.6 trillion of mutual and exchange-traded funds track the index,
according to Morningstar Direct data.
If it were in the S&P 500, it would be the 10th-biggest
company in the index, slightly behind Walmart, whose market value
is about $374 billion.
The rally is a remarkable feat for one of the most hotly debated
stocks in the market. Equally passionate bulls and bears have
pounced on Tesla -- buying its shares or shorting the stock in a
wager that the shares will tumble. The shares' rapid ascent has
evoked memories of the 1990s tech bubble for some investors. Others
compare Tesla to a technology company such as Apple Inc. that is
sure to change the world.
So far, the bulls are winning.
Write to Gunjan Banerji at Gunjan.Banerji@wsj.com
(END) Dow Jones Newswires
July 13, 2020 13:29 ET (17:29 GMT)
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