Tech

Tesla reached an all-time high on Thursday

Key Points
  • Tesla stock reached an all-time high Thursday.
  • The stock briefly traded at $508.61 per share.
  • The company's stock has been on a tear since the S&P Dow Jones Indices announced this week that it will include the carmaker to the benchmark index prior to trading on Monday, Dec. 21
Elon Musk, head of Tesla, at the Tesla Gigafactory construction site in Grünheide near Berlin, September 3, 2020.
Patrick Pleul | picture alliance | Getty Images

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

The company's stock has been on a tear since the S&P Dow Jones Indices announced this week that it will include the carmaker to the benchmark index prior to trading on Monday, Dec. 21. Money managers with funds that track the S&P 500 will need to buy the stock for their portfolios.

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

Morgan Stanley also upgraded Tesla to a buy-equivalent overweight rating Wednesday, the first time in years since the company put a buy rating on the stock, sending share prices up.

"Tesla is on the verge of a profound model shift from selling cars to generating high margin, recurring software and services revenue," Morgan Stanley auto analyst Adam Jonas said in a note on Wednesday. The firm upped its price target to $540 from $360.

Tesla recently reported its fifth consecutive quarter of profit on third-quarter revenue of $8.77 billion. The company also reported that it delivered 139,300 vehicles during the third quarter, a new record for it. 

The company's stock is up more than 490% year to date.

CNBC's Michael Bloom contributed to this report.

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