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Added on the 04/05/2016 16:58:36 - Copyright : Wochit
Win McNamee/Getty Images Tesla's services business could be worth more than all of its car sales by the end of the next decade, Morgan Stanley said last month. The bank estimates autopilot, insurance, energy, and everything else to be worth about 53% of a new street-high target price of $540 by 2030. Investors should also consider comparing the company to other services companies, like Apple, Tinder, Roku, and video game makers, the analysts said. Visit Business Insider's homepage for more stories.
On Tuesday, Tesla stock gained 5%. According to Business Insider the S&P 500 Index Committee decided to add Tesla stock to the index all at once on December 21. Tesla's large market valuation is more than $500 billion. The committee had considered either adding Tesla stock to the index in stages, or doing it all at once. The committee's decision to add Tesla stock to its index in one fell swoop will create unprecedented demand for Tesla stock. Trillions of dollars in funds tied to the S&P 500 are forced to buy the electric vehicle company.
Tesla may be the new kid on the block in the auto industry, but it's quickly become a big kid on Wall Street. The electric-car maker's shares continued to climb more than 4% on Tuesday. This increases the company's total market value above $500 billion for the first time. The milestone comes on the heels of a banner year for Tesla's stock, says CNN. Tesla recently upgraded facility now has the capacity to build 500,000 Model Y and Model 3 sedans a year. This is in addition to 90,000 of its more expensive Model S and Model X vehicles.
Last year Tesla CEO Elon Musk predicted autonomous driving would boost his company's market capitalization to $500 billion. On Monday, Tesla's market cap soared as high as $498 billion even though Tesla is still refining its self-driving software. Business Insider reports that it has only released a beta version to a limited number of customers. Musk made the claim during an investor call in May 2019, when Tesla's market cap was less than $45 billion, CNBC reported. The Tesla chief projected in 2015 that his company's market cap could balloon to $700 billion by 2025.