Why Tesla stock jumped on Thursday
Shares of the electric car maker You’re here (NASDAQ: TSLA) sharply increased on Thursday. The stock ended the trading day up 5.3%, trading at close to $ 656.
Ahead of Global S&Pnext week to include Tesla shares in the S&P 500 for the first time, S&P Global changed Tesla’s debt rating to BB, instead of BB-. S&P Global noted that “the company’s growing liquidity has significantly reduced its financial risk.”
This news follows Tesla’s recent capital increase. Earlier this month, Tesla struck a deal to issue up to $ 5 billion in common stock. This would strengthen Tesla’s cash position by an impressive 34%.
The big upward move in the market also likely helped the stock on Thursday. Underlining the optimism of the market, the S&P 500 rose 0.6% to a record high.
Tesla is expected to be added to the S&P 500 before the market opens. While it is possible that this could give the stock a short-term boost, investors should not be counting on it.
More importantly, Tesla meets its annual forecast of 500,000 deliveries and continues to prove that this is just the tip of the iceberg for its long-term growth story.
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