Elon Musk, founder of SpaceX and CEO of Tesla Inc., will arrive at the Axel Springer Award ceremony in Berlin, Germany, on Tuesday, December 1, 2020.
Liesa Johannssen-Koppitz | Bloomberg | Getty Images
Tesla’s S&P 500 entry will be officially completed at Monday’s trade opening.
The electric car maker will weigh 1.69% in the index, the fifth largest. This is the sixth largest company in the big-cap benchmark when counting Alphabet stock classes together.
The historic addition to the S&P 500 bows at nearly 2020 by Tesla. The company led by Elon Musk has turned five consecutive profit seasons amid increased demand for electric vehicles. Tesla shares have risen more than 730% this year, bringing the company’s market capitalization to more than $ 658 billion. (Dow Jones S&P uses flot-adjusted market value over total.)
Tesla’s entry is the largest ever for an influential stock index, and perhaps the most impressive.
Investors, including passive fund managers and active managers who use the S&P 500 as a benchmark, entered Tesla shares in the latter period, pushing the stock up nearly 6 % Friday to close at a high of $ 695 allowance. More than 200 million Tesla shares changed hands during that single session, more than a quarter on the 30-day average trading volume.
Trading at 186 hours forward, Tesla is also one of the most expensive companies ever to enter the S&P 500. However, its impact on benchmark valuation turned out to be less than many expected. The 2021 S&P 500 price ratio will rise to 22.6 from 22.3, according to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices.
At the same time, as Tesla does not pay shares, the S&P 500 share yield will fall to 1.53% from 1.56%, Silverblatt said.
In terms of S&P 500 performance, the high-growth stock could move the needle. For every $ 11.11 Tesla moves, the S&P 500 changes 1 point, according to the index analyst.
Goldman Sachs previously predicted that the total yield of the S&P 500 would have risen 2 percentage points if Tesla had been a selector all year. The S&P 500 so far in 2020 is up 14.8%.
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