In December 2020, the Tesla shares will be added to the S&P 500
In December 2020, the Tesla ...
Subscribe to Newsletter

In December 2020, the Tesla shares will be added to the S&P 500

17 November 2020
2864
2 min.
4
In December 2020, the Tesla shares will be added to the S&P 500

Valuable company

The Tesla shares will finally be listed on the S&P 500 broad index next month., accounting for around 1% of the index. Analysts predict a jump in the growth of shares, as the investment funds indexed by the S&P 500 will add Tesla shares to their portfolios. Adding to the index can take place in two stages.

Tesla shares (TSLA), which have increased by almost 390% since the beginning of the year, jumped 53.8% after the close of trading on Monday as the S&P Dow Jones Indices index committee announced plans to include shares of the electric car manufacturer in the S&P 500 benchmark index in December. Shares to be excluded from the index will be announced later.

Tesla may become one of the most valuable companies in the S&P 500 and its share in the index may exceed 1%. At the close of trading on Monday, the Tesla share price was $408.09 and its market capitalisation was almost $390 billion.

The addition of Tesla to the S&P 500 was expected given the high growth in shares since the beginning of the year. For example, the Nasdaq 100 ind, which already includes Tesla shares, rose 37.56%, while the S&P 500 showed an increase of only 12.26%.

The addition of Tesla will also trigger an unprecedented volume of purchases from investment funds tracking the S&P 500 ind. Freitas estimates that passive index funds will have to buy Tesla shares worth approximately $58 billion.

According to S&P Dow Jones, Tesla will be one of the largest weight gain transactions in the last decade. With this in mind, the Index Commission in a separate press release asked investors for their opinion on whether Tesla should be included on 21 December or in two stages, starting on 14 December. This procedure will also make it easier for investment companies to adjust their portfolios in stages.

Adding Tesla to the benchmark index will represent a historic step for Elon Musk's company, which has long been subject to Wall Street skepticism. The electric car manufacturer has experienced many ups and downs, but in the last five months the company has managed to achieve profits and Tesla management has set many new expansion and development plans for itself.

Persons1 and Companies3 in the news

CEO of Tesla
1 place
Nasdaq
1 place
Dow Jones
2 place
Tesla
3 place
Section:
Rating companies
Instagram
17 Mention
Netflix
14 Mention
X (Twitter)
10 Mention
White House
8 Mention
TikTok
8 Mention
Tesla
8 Mention
Us Weekly
7 Mention

NEW YORK NEWS

News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director
Population
8170067698
Died this year
53587764
Born this year
131835384