With Tesla(NASDAQ:TSLA) shares hitting new highs during the week (crossing $500 at one point) on news that the automaker will soon be included in the S&P 500 Index, many investors are likely taking a closer look at the stock. Some investors who have missed out on its meteoric rise over the last 12 months are likely wondering if it's too late to buy into this growth story. Furthermore, shareholders may be considering taking some profits.

While there's never a way to be certain how any stock will perform over the long haul, investors should at least do their best to understand if the current valuation seems to make sense or not. To help investors with their thinking, here's a closer look at the company's recent business momentum and the growth stock's valuation in relation to its prospects.

A brief review of Tesla's momentum in 2020 explains why investors have been piling into the stock. Trailing-12-month deliveries are up 24% year over year, despite the company suffering factory shutdowns earlier this year due to COVID-19-related lockdowns.

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