Will the blue sweep boost Tesla? Don’t count on it

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Tesla Inc (NASDAQ: TSLA) stock has rallied wildly over the past year, gaining more than 700%. Solid growth in vehicle deliveries and margin expansion have both contributed to the stock’s surge. Tesla’s inclusion in the S&P 500 Index (SP: .INX) index also helped.

Still, these factors can’t fully explain Tesla’s incredible rise. Tesla stock has doubled just since the middle of November, even though it hasn’t reported earnings. It has risen 20% in the first three weeks of 2021, adding about $150 billion to its fully diluted market capitalisation.

Tesla stock performance data by YCharts.

Investor optimism about a “blue…