LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Business News » Markets News

Tesla Inc share price: S&P 500 to swallow automaker in one gulp

Tesla Inc shares jumped 4% in extended trade on Monday after S&P Dow Jones Indices said it would add one of Wall Street`s most valuable companies to the S&P 500 index all at once on Dec. 21.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
Tesla Inc share price: S&P 500 to swallow automaker in one gulp
Adding Elon Musk`s Tesla to Wall Street`s most followed benchmark will force index funds to buy about $73 billion worth of its shares, S&P Dow Jones Indices said.
Updated: Tue, Dec 01, 2020
08:57 am
Reuters

Tesla Inc shares jumped 4% in extended trade on Monday after S&P Dow Jones Indices said it would add one of Wall Street`s most valuable companies to the S&P 500 index all at once on Dec. 21.

Adding Elon Musk`s Tesla to Wall Street`s most followed benchmark will force index funds to buy about $73 billion worth of its shares, S&P Dow Jones Indices said.

The electric car maker`s stock has surged over 40% since Nov. 16, when it was announced Tesla would join the index.

At that time, S&P Dow Jones Indices said it would consult investors about whether to potentially add Tesla in two tranches a week apart to make the addition easier to handle for index funds.

"In its decision, S&P DJI considered the wide range of responses it received, as well as, among other factors, the expected liquidity of Tesla and the market’s ability to accommodate significant trading volumes on this date," S&P Dow Jones Indices said in a media statement.

With a stock market value around $550 billion, Tesla will be among the most valuable companies ever added to the index. Tesla will account for just over 1% of the S&P 500.

Up about 600% in 2020, the California-based car maker has become the most valuable auto company in the world, by far, despite production that is a fraction of rivals such as Toyota Motor, Volkswagen and General Motors.

A blockbuster quarterly report in July cleared a major hurdle related to profitability that had prevented Tesla`s inclusion in the S&P 500.

About a fifth of Tesla`s shares are closely held by Musk, the chief executive, and other insiders. Since the S&P 500 is weighted by the amount of companies` shares actually available on the stock market, Tesla`s influence within the benchmark will be slightly diminished, putting it at around seventh place, currently held by Johnson & Johnson.

S&P Dow Jones said it would announce on Dec. 11 which company Tesla would replace in the S&P 500.
 

The story has been taken from a news agency

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:

LATEST NEWS

Pension Payment Order: Modi government explains how PPO promises ease of living for senior citizens

KGF Chapter 2 Teaser Record: Yet another record rare achievement for film industry

Master box office collection: Furious! Thalapathy Vijay, Makkal Selvan Vijay Sethupathi movie crosses Rs 100 cr mark in just 3 days

New coronavirus shocker from China! Now, virus found in ice cream - Check eye opening details here

WhatsApp new privacy policy to be rolled back? Petition reaches Supreme Court

EPFO Pension: Your Provident Fund (PF) structure may change soon - Here is why

EPF vs PPF vs VPF vs NPS: Money making strategy! Top personal finance experts say do this to earn big gains

Looking for mid-range budget-friendly laptops? VAIO with Nexstgo launches new series - Prices, specs, features and all you need to know

Amazon.in Great Republic Day Sale: Up to 40% off! Check top deals you can avail

Online shopping: Have e-commerce business? Here is how to give boost to trade in 2021

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved