Tesla’s road to the S&P 500 was a wild ride, these charts show

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One tumultuous year for stocks, few stories were as dramatic as the outbreak of Tesla Inc.

electricalcar manufacturer led by billionaire Elon Musk will begin trading as a member of the S&P 500 Index for months, capping a series of 2020 milestones.

Here are six charts that show what a wild ride was like and why volatility may be far from over.

Long view

Tesla’s revenue growth has been hectic this year, but its shares are poised for a sixth straight quarterly gain as traders focus on their long-term potential.

The pace of earnings far outpaced quarterly sales growth this year

Fast moving target

Analysts have struggled to keep up with the exuberance of Tesla investors, who have continued to grow stocks despite the minority disappointments and warnings that the stock is “dramatically overrated. Tesla shares closed at $ 695 on Friday. At this point last year, the 12-month average price on Wall Street was $ 58.30.

Analysts' price targets have largely tracked Tesla's share price this year

Massive movements

Tesla was one of the most volatile stocks in the US this year. It is now common for the value of one-day fluctuations in Tesla’s stock to exceed the market capitalization of major car manufacturers, such as Fiat Chrysler Automobiles NV, Ferrari NV or BMW AG.

Tesla's daily changes in market value may exceed the full value of other global rival entities on a trading day

Technical extremes

Tesla’s 14-day relative power index has outperformed the “overbought” range by almost three out of 10 trading days this year, usually a sign that a stock is ready for a reversal. Not so for Tesla, which closed at a record high on Friday.

Tesla blows past technical levels that often signal imminent withdrawals

Highly appreciated

How Tesla should be evaluated is one of the most controversial issues between bulls and bears. Goldman Sachs says the stock is worth $ 780; JPMorgan’s target price is $ 90. Tesla’s valuation, both based on price to earnings or price to sale, is significantly higher than both Apple Inc. and the NYSE FANG + index of megacap technology stocks.

Tesla multiples are smaller than the Apple and NYSE FANG index

The way forward

Skeptics say Tesla’s momentum may break after its inclusion in the S&P 500 as one of the heaviest members, but there is a precedent for the rally to continue. Like Tesla, Berkshire Hathaway Inc. it made its debut with a heavy share and, after a short sale, resumed its advance to exceed the reference level in the next five years.

Berkshire shares outperformed the S&P 500 for a period of five years after inclusion

– With the assistance of Karen Lin, Jan-Patrick Barnert, Kenneth Sexton and Brendan Walsh

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