Tesla’s crazy year

Posted on Dec. 2020 at 12:41Updated 21 Dec. 2020 at 14:31

Tesla is entering the big leagues of capitalism. The automaker led by Elon Musk joined the S&P 500 on Monday, the prestigious stock index comprising the 500 largest caps of the US stock markets. A shattering arrival that punctuates a crazy year on Wall Street, where the value of the TSLA share soared by more than 730% in 2020. A year ago, the price of a share was trading around 70 dollars, against … $ 695 at close on Friday. With a market valuation close to $ 650 billion, Tesla is the most valued company to ever enter the S&P 500.

And the stock market frenzy shouldn’t end there. By joining this very closed club, the Tesla share will be systematically integrated into listed index funds, the famous ETFs very popular with small holders. Large portfolio managers are also going to have to make room for the stock to meet the requirement to hold S&P 500 listed stocks. This presages a massive inflow of funds for what is already the stock. no longer traded on Wall Street.

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