Tesla (NASDAQ:TSLA) continues to be the darling of the Nasdaq. Shares of the Silicon Valley automaker are up over 130% from the March low of $350.51.
But not everyone is happy to hold the stock. Jamie Simmons’ Renaissance Technologies, a hedge fund with $110 billion in assets under management, parted with $1.2 billion worth Tesla shares in the first quarter. Those shares could be worth a lot more as Tesla is on the cusp of entering the S&P 500.
Despite the drama behind the reopening of the Fremont facility, Tesla is knocking on the doors of the prestigious S&P 500. The Wall Street Journal reports that the electric carmaker is close to satisfying the index’s criteria of printing a cumulative profit over four consecutive quarters .
Tesla has been profitable over the last three quarters. The company reported a net income of $143 million in the third quarter of 2019, $105 million in the fourth quarter, and $16 million in Q1 2020.
If Tesla can somehow post another profitable quarter despite the COVID-19 pandemic, it would be eligible for inclusion.
But analysts are not so optimistic, as they see the electric car company bleeding $387 million this quarter .
Even if Tesla fails to defy Wall Street this quarter, the tech company can afford to wait. Tesla’s Shanghai and Fremont facilities are in full throttle. It remains confident that it can deliver on its guidance of 500,000 vehicles this year. The fundamentals look bullish in the long term, and it appears TSLA’s technicals look mighty strong as well.
Legendary trader Peter Brandt shocked financial Twitter when he shared a bullish chart for TSLA. The most followed trader on Twitter says that TSLA’s chart looks ripe for a massive technical breakout.
At a current price of around $808.01, the potential upside is almost 160%.
Brandt is not the only popular trader who’s bullish on TSLA. Hedge fund manager Will Meade says that the car company is up to something after spotting a trader making a bullish call on the stock.
With the U.S. economy slowly reopening, things can only go up for Tesla. That’s good news for Elon Musk but not so much for Jim Simmons and Renaissance Technologies.