Stock of the Week: Tesla

Tesla shares are up nearly 600% this year but can the EV car maker live up to the market's high expectations?

James Gard 26 November, 2020 | 10:05AM
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Post-It Note

Tesla (TSLA) has been one of the most talked about (and most traded) stocks this year and has come to represent the tech-driven recovery in 2020. Its shares are up more than 500% this year. So inevitably, given a choice between Tesla and some more old-school automotive names like Ford and VW, our Twitter followers have chosen Tesla as stock of the week.

What else can be said about Tesla? Let’s start with valuation, which is why investors large and small have got so excited about the stock this year – and why founder Elon Musk has just surpassed Bill Gates as the second richest man in the world. The shares, which will be included in the S&P 500 from December, were worth $83 at the start of 2020 and have now hit $550 (after a recent stock split), a gain of 560% in a pandemic year.

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About Author

James Gard  is content editor for Morningstar.co.uk