• 21 hours The Cannabis Industry Is Looking To Fill The Employment Gap
  • 6 days The New World Tax Order
  • 7 days Is Crypto Finally Ready To Pay The Piper?
  • 8 days Is It Time To Buy The Global Gaming Market Dip?
  • 11 days Even The Mafia Has A Millennial Problem
  • 13 days Zuckerberg Loses Billions in Social Media Outage
  • 14 days ‘Pandora Papers’ Leak Reveals More Financial Crime
  • 15 days US Retail Has A Major Supply Chain Problem
  • 18 days China Has Set Out To Crush Crypto...Again
  • 19 days Top Performing Cannabis Stocks of the Year
  • 20 days Millennials Could Power A 20-Year Bull Stock Market
  • 25 days The Million-Dollar Question: Will China Bail Out Evergrande?
  • 27 days 3 Restaurant Stocks In Full Recovery Mode
  • 27 days Bitcoin Is Driven By Testosterone
  • 32 days Quantum Computing Is The Newest Megatrend In Silicon Valley
  • 33 days How To Invest In The Cybersecurity Boom
  • 35 days Investors Are Patient With Unprofitable Giants
  • 37 days Wells Fargo Back In The Scandal Spotlight Once Again
  • 39 days 5 Stocks To Keep A Close Eye On This Year
  • 41 days Central America Is Ready For The Bitcoin Hustle
The Million-Dollar Question: Will China Bail Out Evergrande?

The Million-Dollar Question: Will China Bail Out Evergrande?

Expanding by borrowing aggressively in…

Investors Are Patient With Unprofitable Giants

Investors Are Patient With Unprofitable Giants

Some of the biggest companies,…

US Airline Stocks Take A Beating On New EU Restrictions

US Airline Stocks Take A Beating On New EU Restrictions

The EU’s recommendation hurt all…

Fred Dunkley

Fred Dunkley

Writer, Safehaven.com

Fred Dunkley is a tech analyst, writer, and seasoned investor. Fred has years of experience covering global markets and geopolitics. 

Contact Author

  1. Home
  2. Investing
  3. Stocks

Is Tesla Heading To The S&P 500?

Tesla

EV sales may be experiencing an expected dip in sales this year thanks to pandemic-induced recession, but that’s no matter for quarantined millennial traders who have taken over retail investing and are pushing EV stocks to new heights.

Millions of people, mostly of the Millennial generation, who are pouring into Tesla as one of their favorite ESG stocks for a renewable energy springboard will be anxiously awaiting Tesla’s quarterly earnings, which are due out tomorrow. 

And it will be a huge day of vindication for these novice investors who have shunned the trading legends if Tesla reports another quarterly profit tomorrow, as expected. 

Indeed, while Wall Street is moaning about the ‘Robinhood bubble’ caused by the flood of newbie retail investors who don’t know a thing about fundamentals, another quarterly profit for Tesla will pave the way for its entry into the S&P 500.

Even more to the point, with a market cap of ~$304 billion, Tesla would end up being one of the most valuable companies ever added to the index. 

Tesla was already riding high on Q1 car deliveries that came higher than expectations, and the bulls are expecting more of the same.  Tomorrow marks another milestone in the history of one of the most controversial stocks Wall Street has ever seen. You either love it, or you hate it. You’re either the most bullish bull around, or you're a bear all the way. There’s nothing in between here. 

Millennial investors are loyal to the death--and they are particularly loyal to Elon Musk. With their help, he’s managed to defy the bears time and again never more strongly that this past month. 

Now, they have Robinhood, the zero-fee trading app that has democratized trading, to help them provide a unified front that threatens to dominate the market. And Tesla turns out to be the poster child for millennial “impact investing”. 

Tesla and the EV sector have been on a tear in recent weeks thanks to a wave of speculative bets and the famous “Robinhood effect”. And no amount of bad press seems capable of derailing Millennial sentiment on this one. 

Tesla's stock reached an unprecedented intraday high of $1,760 last week as tens of thousands of new investors poured into the stock via Robinhood. Almost 40,000 Robinhood accounts added Tesla shares during a single four-hour span last Monday, according to Bloomberg.

Related: BMW Signs $2.3 Billion Battery Deal With Swedish Producer

And while Tesla is one of Robinhood’s most popular stocks--another is also an EV manufacturer--Chinese NIO. Together over the past 30 days, these two stocks have gathered the highest number of new retail traders on Robinhood. 

Nikola, the electric truck startup, is also on Robintrack’s top 25 leaderboard, and the EV industry at large is likely to get another boost if Tesla gets added to the S&P 500--just like they have all benefited from the millennial attention to Tesla on Robinhood.  

There’s a lot of talk about these newbie investors creating an EV stock bubble that, when it bursts, will be messy, but this could also just be Wall Street refusing to see the writing on the wall. The market is changing, and this new form of trading democracy has extreme power to drive stocks whether legendary investors agree or not. 

So, against this backdrop, how will Millennials react to Amazon’s direct challenge? In June, Amazon announced it would acquire self-driving car startup Zoox for $1.2 billion, prompting Musk to call him a “copycat”. 

By Fred Dunkley for Safehaven.com 

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment