The 4 Best Performing Stocks On The Nasdaq 100 In 2020

NASDAQ: TSLA | Tesla, Inc. News, Ratings, and Charts

The Nasdaq-100 is one of the world’s preeminent large-cap growth indexes. It includes 100 of the largest domestic and international non-financial companies that are listed on the Nasdaq exchange. The index reflects companies across major top-performing industry groups, with its largest allocations going to technology and consumer services.

After being pummeled in the first quarter of 2020, the broader market proved unstoppable for the rest of the year. The COVID-19 pandemic accelerated the pace of digital transformation, as individuals and businesses began relying heavily on technology to remain functional. This created an enormous opportunity for most tech companies, and investors have rushed to reward the prominent players. The tech-heavy Nasdaq-100 thus became the first major U.S. stock index to rebound from its coronavirus decline in June 2020. The index closed the year with a whopping 47.6% gain, significantly outperforming the S&P 500’s 16.1% returns.

Here are four stocks that skyrocketed last year based on their pandemic-ready business models to become the best-performing stocks in the Nasdaq-100 index: Tesla, Inc. (TSLA - Get Rating), NVIDIA Corporation (NVDA - Get Rating), PayPal Holdings, Inc. (PYPL - Get Rating) and JD.com, Inc. (JD - Get Rating).

Tesla, Inc. (TSLA - Get Rating)

TSLA designs develops, manufactures, and sells electric vehicles (EVs), EV powertrain components, and stationary energy storage systems in the U.S., China, and internationally. TSLA operates primarily through the following segments – Automotive, Energy Generation, and Storage.

On January 2, TSLA said it delivered a record 180,570 vehicles during the fourth quarter of 2020, rising nearly 30% compared to the preceding quarter. The company delivered 499,550 vehicles in 2020 but fell short of CEO Elon Musk’s target of 500,000.

TSLA plans to launch three new electric vehicles soon, including the Tesla Cybertruck and two electric cars. Moreover, after months of speculation, last month TSLA was finally added to the S&P 500 Index after five consecutive quarters of profit. It was also added to the S&P 100 list.

In the third quarter, the company generated $8.77 billion in revenue, growing 39% year-over-year, driven by 44% year-over-year rise in vehicle deliveries. Its energy generation and storage segment generated $579 million in revenue, rising 44% year-over-year as the business hit record deployments of 759 MWh. Its non-GAAP EPS came in at $0.76, more than doubling year-over-year.

TSLA is reportedly planning to launch its products in India this year and further expand in China, while opening new factories in Texas and Germany. The company is actively undertaking efforts to reduce battery costs through extensive battery technology development. It aims to integrate a tab-less battery system in its vehicles, which should significantly increase its profitability.

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