Tesla Soars After Entering S&P 500; already worth more than 350,000 million

Must Read

Brian Adam
Professional Blogger, V logger, traveler and explorer of new horizons.
- Advertisement -
- Advertisement -
- Advertisement -
- Advertisement -

Tesla founder Elon Musk.

Tesla will go on to join the list of members of the S&P 500 next December after failing to do so in September. “Tesla will enter the S&P 500 before the opening on Monday, December 21 to coincide with the quarterly rebalancing in December,” the company stressed.

The electric car firm has explained that due to its large size, the S&P Dow Jones Index is considering whether to include it in one go or in two separate tranches to be completed on December 21. All this after speculation last September that Elon Musk’s company could enter the previous revision of the index. However, he finally did not.

With a market capitalization close to 420,000 million dollars (353,783 million euros), after adding more than 8% in the session, the US manufacturer is the largest company that has been added to the indicator and will be one of the most important components influential, with a similar weighting to Johnson & Johnson.

Last month, Tesla reported its fifth consecutive quarter of profit with the best results in its history in the middle of the pandemic: 331 million dollars (279 million euros), which was 218% more than in the same period of 2019. Since the beginning of the year, the automaker has more than quadrupled in value and at the end of August made a “split” of five shares for each title.

From eToro, the market analyst Adam Vettese has assured that the irruption of the company in the US selective will cause that “a large amount of passive funds, which contain billions of assets that replicate the index, will be forced to buy the weighting appropriate share of Tesla ”.

“The September disappointment was a bitter blow to the company but they haven’t had long to wait as they now seem to tick all the boxes. The decision has also helped Elon Musk surpass Mark Zuckerberg as the third richest man in the world. “, said, for his part, analyst Craig Erlam, of the Oanda firm.

- Advertisement -

Subscribe to our newsletter

To be updated with all the latest news, offers and special announcements.