Tesla hit an all-time excessive on Thursday

Elon Musk, Head of Tesla, at the Tesla Gigafactory construction site in Grünheide near Berlin, September 3, 2020.

Patrick Pleul | Image Alliance | Getty Images

Tesla stock hit an all-time high on Thursday, briefly trading at $ 508.61 per share before closing at $ 499.27.

The company’s stock has been in a rift since the S&P Dow Jones Indices announced this week that the automaker would be added to the benchmark index ahead of trading on Monday, December 21st. Money managers with funds that track the S&P 500 must buy the stock for their portfolios.

The stock is currently on its way to its best week since the week ending August 21, ahead of the 5-for-1 stock split on August 31.

Morgan Stanley on Wednesday overweighted Tesla to a buy equivalent for the first time in years since the company issued a buy rating on the stock, driving stock prices higher.

“Tesla is about to make a profound model shift from selling cars to generating high-margin, recurring software and service revenue,” said Adam Jonas, auto analyst at Morgan Stanley, in a note on Wednesday. The company increased its price target from $ 360 to $ 540.

Tesla recently reported its fifth consecutive quarter of earnings on sales of $ 8.77 billion in the third quarter. The company also announced it had delivered 139,300 vehicles in the third quarter, a new record.

The company’s stock is up more than 490% since the start of the year.

CNBC’s Michael Bloom contributed to this report.

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Correction: Tesla had a 5-to-1 stock split.

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