TESLA: set to leap upwards
After the August spike up to almost $500 per share and the ensuing correction, the Tesla stock price has been trading sideways, above $400 per share. Against many speculations of its possible growth this year, it’s been decreasing in volatility as both highs and lows are visibly converging at the present range of $400. What’s the outlook though?
Here is the news: Tesla will join the S&P 500 in December. For a company, inclusion in the S&P is like a graduation ceremony for a student or a medal of honor for a soldier. So once the company becomes a part of the index, it is now branded as the most respectable, looked up at, esteemed, valued, etc.
Now, there are all kinds of speculation about where the stock price may come but one thing is sure: there will be much more trade around this stock than ever before. That means all possible volatility – and, hence, all possible benefits of riding the waves of that volatility once the stock gets included in the index.
