The rally propelled Tesla shares to a new intraday high of $508.61 on Thursday, and made it the best performing stock this week in the Nasdaq-100 Index. The week’s 21% advance marked the company’s strongest performance since Aug. 21, and pushed its market value to $470 billion.
Analysts at Goldman Sachs Group Inc. said on Friday Tesla’s scheduled Dec. 21 entry into the benchmark could result in $8 billion of additional demand from actively managed U.S. large-cap mutual funds. That would represent about 1.7% of the company’s current market capitalization.
Nio Inc., Lordstown Motors Corp., XPeng Inc. and Li Auto Inc. are all set to close their best week on record. Tiny peer Ayro Inc’s shares have soared 143% this week alone, while Nikola Corp. jumped 26%.
A stream of positive developments is fueling the sector’s momentum, suggesting the electric revolution in the auto and transportation industries may be coming much sooner than expected. In one example, U.K. Prime Minister Boris Johnson this week called for phasing out gasoline and diesel-fueled cars entirely by 2030.
That pledge follows a similar commitment by U.S. President-elect Joe Biden to create systems promoting clean energy and electric vehicles, suggesting growing coordination among governments globally to develop this industry.