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.