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Tesla takes Toyota’s crown as world’s most valuable carmaker
Elon Musk’s Tesla has reached a new milestone – its share price has streaked past $1,000 for the first time in the company’s history.
Tesla takes Toyota’s crown as world’s most valuable carmaker
Elon Musk’s Tesla has reached a new milestone – its share price has streaked past $1,000 for the first time in the company’s history.
According to eToro analyst Adam Vettese, the result comes off the back of a “strong day”, with Tesla shares closing the day on Nasdaq up 9 per cent.
“The gain means that Tesla is now the most valuable carmaker in the world, having surpassed Toyota,” Mr Vettese observed.
The rally was despite media reports that at least six of Tesla’s employees in California had tested positive for COVID-19, after Mr Musk reopened a facility last month against local guidelines.
Another company boasting an improved share price, despite the pandemic, is Adobe.
According to the eToro analyst, this is due to optimism around cloud-based services demand and the security of its subscription-based earning.
He highlighted that the share price for the tech firm is up more than 20 per cent this year-to-date – and almost 50 per cent compared with 12 months ago.
While analysts do expect Adobe to report an earnings per share figure that is in line with expectations from three months ago, Mr Vettese said investors will be “watching for revenue growth to justify the share price valuation”.
“Earnings reports have been hit and miss for the mainly tech stocks that investors have piled into in anticipation of increased demand driven by the pandemic, and even when firms have beaten expectations, the immediate reaction in some cases has still been a share price pullback,” he conceded.
Elsewhere, high-end athleisure brand Lululemon “has been an unexpected beneficiary of the pandemic”.
Mr Vettese said its share price has soared by 40 per cent this year-to-date and has attributed the boost to “loyal customers, a strong online presence and consumers turning to casual clothing options while stuck at home”.
While analysts are expectant of a dire quarter earnings wise, which is likely to push the share price down, investors are optimistic that the firm will bounce back strongly from store closures and return to a “multiyear winning streak”, Mr Vettese offered.
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