Enlarge /. A Tesla plant in Lathrop, California.
Tesla's stock closed Thursday at a record high of $ 2,000, bringing the company's market cap to $ 370 billion. Tesla has been on a week-long rally since announcing a five-to-one stock split. The split will be distributed to anyone who holds the stock tomorrow – Friday, August 21st.
A little more than two months have passed since Tesla's stock hit $ 1,000 per share for the first time. Last month, Tesla announced solid earnings of $ 104 million for the second quarter. It was the fourth quarter in a row.
This could qualify Tesla for inclusion in the S&P 500 stock index. If Tesla wins a spot in the S&P 500, funds that track the index would have to buy Tesla shares. That could drive the share price even higher.
However, it is not obvious what triggered the rally of the past few days. Tesla started the week at $ 1,680. No significant positive developments for the company were announced this week.
One factor could simply increase the publicity for electric car manufacturers in general. Tesla rival Nikola had a successful IPO in June; The company is now valued at $ 15 billion. A Chinese electric car maker named Li Auto raised $ 1 billion in an IPO last month.
Another little-known electric car maker, Canoo, is planning to go public through an alternative to an initial public offering known as the Special-Purpose Acquisition Company. Tesla's rival Rivian has raised $ 5 billion from private investors over the past two years.
Neither of these companies has achieved nearly as much as Tesla. It is widely believed that investors' interest in these companies is based on the hope that one of them will become "the next Tesla." But with money flowing into these Tesla rivals, it may have inspired investors to look back at the original.