Tesla’s increase provides tighter traction for S&P 500


Tesla had recorded another day of gains on Thursday. Its shares had extended their rally just before it debuts in the S&P 500 index in December. In addition to this, the automobile manufacturer’s market value was seen nearing $500 billion, indicating the growing domination of mega-cap growth stocks within Wall Street’s most-watched index.

The California-based company’s shares recorded a 2.6% increase, expanding over 20% since the S&P Dow Jones Indices’ announcement of adding Tesla to Wall Street’s main benchmark. More so, this shift will prompt index funds to purchase around $50 billion of its shares.

Tesla had seen an estimated 500% growth in 2020, making it the most valuable automobile manufacturer in the world despite producing just a fraction of its rival’s total production.

The information and recommendations contained in this analytical document are published strictly for information purposes and are not considered as an offer to buy or sell the trading tools mentioned above and are not intended to motivate to perform certain transactions
Something went wrong